For most businesses, inventory is carried on a firms balance sheet as a current asset. Because of supply-chain issues, inflation is hitting the cost of inventory acquisitions.

If management wants to show the highest earnings per share, current ratio (current assets/current liabilities) and working capital (current assets-current liabilities), which method of inventory should it choose First in, first out (FIFO) or last in, first out (LIFO)? Explain.