For case 4-3 page 271 of financial statement analysis. What is the LIFO inventory computation based on? How is it calculated? It says it's based on 100 units at $10, 300 units @ $11 and 400 units at $12. How is this portion figured out? Also, how is the current ratio and debt to equity ration and inventory turnover and return on total assets figured out? What are the steps and factors? 

Net Income Computation
	FIFO	LIFO	Average Cost
Sales (1,000 x$25)	25,000.00	25,000.00	25,000.00
Cost of sales:
Beginning Inventory	-	-	-
Add: Purchases	23,200.00	23,200.00	23,200.00
Subtract: Ending Inventory	(11,700.00)	(9,100.00)	(10,312.00)
Cost of sales:	11,500.00	14,100.00	12,888.00
Gross profit
Operating expenses	(5,000.00)	(5,000.00)	(5,000.00)
Net Income	8,500.00	5,900.00	7,112.00
Net income per share	4.25	2.95	3.56
FIFO inventory computation is based on 500 units at $15 and 300 at $14
LIFO inventory computation is based on 100 units at $10 and 300 units at $11, and 400 units at $12
Average cost is obtained by dividing $23,200 by 1,800 units purchased, yielding an average unit price of $12.89.
Current assets	50,000.00
Total assets	75,000.00
Current liabilities	25,000.00
Total liabilities	35,000.00
Shareholders Equity	40,000.00
Financial Ratio Computations
Current ratio	2.47	2.36	2.41
Debt-to-equity ratio	67.8%	71.3%	69.6%
Inventory turnover	2.00	3.10	2.50
Return on total assets	9.8%	7.0%	8.3%
Gross margin ratio	54.0%	43.6%	48.4%
Net profit as percent of sales	34.0%	23.6%	28.4%
FIFO Effects: FIFO method generally yields higher valuation of inventory on the balance sheet and lower COGS than under LIFO results. This results in a higher net income.
LIFO Effects: LIFO methond will allow management an opportunity to munipulate profits by allowing inventory to be depleted in slow years. Also, in times of cost increased, the LIFO method results in an unrealistically low reported inventory figure. At the same time, it lowers the current ratio and icrease the inventory turnover ratio.
Average Cost Effects: The average cost method smoothes out cost fluctuations by using a weighted average cost in the valuatio n of inventories and COGS. As a result, the net income will be close to an average of the net income under LIFO and FIFO.
Current ratio = Current assets/current liabilities
Total debt to equity=Total liabilities/Shareholder's equity
Inventory turnover=Cost of sales/Average Inventory
Return on assets=Net income + Interest expense x(1-Tax rate)/Average total assets
Gross profit margin=Sales-Cost of sales/sales
Net profit margin=Net income/Sales