Explain the financial statement effect of inventory cost flow assumptions. BE6.6 (LO 2), C The management of Milque Corp. is considering the effects of various inventory- costing methods on its financial statements and its income tax expense. Assuming that the cost the company pays for inventory is increasing, which method will: a. provide the highest net income? b. provide the highest ending inventory? c. result in the lowest income tax expense? d. result in the most stable earnings over a number of years