\begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Analyze the following for Displays Incorporated: } \\ \hline \multicolumn{2}{|c|}{\begin{tabular}{l} (a) Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. \\ Assuming the ending balance of inventory under LIFO would have been $118,000, calculate the LIFO reserve. \end{tabular}} \\ \hline LIFO reserve is: & 25,000 \\ \hline \multicolumn{2}{|c|}{\begin{tabular}{l} (b) Assume the $88,000 beginning balance of inventory comes from the base year with a cost index of 1.00 . The cost index at the \\ end of 2024 of 1.10 . Calculate the amount the company would report for inventory using dollar-value LIFO. \end{tabular}} \\ \hline Ending inventory using dollar-value LIFO: & 109,200 \\ \hline \multicolumn{2}{|c|}{\begin{tabular}{l} (c) Indicate whether each of the amounts below would be higher or lower when reporting inventory using LIFO (or dollar-value \\ LIFO) instead of FIFO in periods of rising inventory costs and stable inventory quantities. \end{tabular}} \\ \hline 1. Inventory turnover ratio & Higher under LIFO \\ \hline 2. Average days in inventory & Lower under LIFO \\ \hline 3. Gross profit ratio & Lower under LIFO \\ \hline \end{tabular}