b

Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $268,799 and average assets of $1,565,180. If Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $44,560 more than under FIFO, and its average assets would have been $45,030 less than under FIFO. Required: a. Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO). (Enter your answers as percentages rounded to 1 decimal place (i.e., 12.2%).) FIFO LIFO ROI b. Suppose that two years later costs and prices were falling Under FIFO, net Income and average assets were $314,699 and $1,873,690, respectively. If LIFO had been used through the years, Inventory values would have been $46,470 less than under FIFO, and current year cost of goods sold would have been $22,892 less than under FIFO. Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO) (Enter your answers as percentages rounded to 1 decimal place (.e. 12.2%).) FIFO LIFO ROI