Explain the influence of the use of LIFO inventory on the liquidity, cost of goods sold, profitability, and inventory turnover The following ratios might help you: Current Assets 1. Current Ratio Current Liabilities 2. Acid test ratio Current Assets - Inventory Current Liabilities 3. Cash Ratio Cash Equivalents + Marketable Securities Current Liabilities 4. Accounts Receivable Turnover Net Sales Average Receivables 3. Accounts Receivable Turnover in Days Average Receivables Net Sales 365 Explain the influence of the use of LIFO inventory on the liquidity, cost of goods sold, profitability, and inventory turnover The following ratios might help you: Current Assets 1. Current Ratio Current Liabilities 2. Acid test ratio Current Assets - Inventory Current Liabilities 3. Cash Ratio Cash Equivalents + Marketable Securities Current Liabilities 4. Accounts Receivable Turnover Net Sales Average Receivables 3. Accounts Receivable Turnover in Days Average Receivables Net Sales 365