Exercise 6-52 Financial Statement Effects of FIFO and LIFO The table below lists financial statement items that may be affected by the use of either the FIFO or LIFO Inventory costing methods. Required: Conceptual Connection: Assuming that prices are rising, identify whether the specified item is (a) higher or (b) lower under FIFO and LIFO. FIFO LIFO Ending inventory Cost of goods sold Higher Gross margin Lower Income before taxes Payments for income taxes Net income