If a firm utilizes LIFO instead of FIFO for inventory valuation, the effect on the following ratios will be: Profit Margin = Net Income / Sales Current Ratio = Current Assets / Current Liabilities Profit Margin will higher/Current Ratio will be lower Profit Margin and Current Ratio will be the same Profit Margin will be higher/Current Ratio will be higher Profit Margin will be lower/Current Ratio will be higher Profit Margin will be lower/Current ratio will be lower