Exercise 5-20 (Algo) LIFO versus FIFO-impact on ROI LO 5-7, 5-8 Mannisto Incorporated uses the FIFO Inventory cost flow assumption. In a year of rising costs and prices, the firm reported net Income of $253,371 and average assets of $1,541,430, if Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $47,950 more than under FIFO, and its average assets would have been $43780 less than under FIFO. Required: a. Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO). b. Suppose that two years later costs and prices were falling. Under FIFO, net income and average assets were $296,831 and $1,809,830, respectively. If LIFO had been used through the years, inventory values would have been $41,220 less than under FIFO, and current year cost of goods sold would have been $19,807 less than under FIFO. Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO). Note: For all requirements, enter your answers as percentages rounded to 1 decimal place (le., 12.2%). a. ROI b. ROI Answer is complete but not entirely correct. LIFO 205,421.0% FIFO 16.4 % 13.7 % 16.4 %