Inventories: Substantially al inventories located in the United States are valued using the last-in, first-out (LIFO) method. Raw materials and work in process Motorcycle finished goods Parts & accessories and general merchandise Inventory at Lower of FIFO cost or net realizable value Excess of FIFO over LIFO cost Total Inventories, net 2018 (in thousands) 2017 (in thousands) $177,110 $161,664 301,630 289,530 136,027 139,363 $614,767 $590,557 (58,639) (52,355) $556,128 $538,202 Inventory obsolescence reserves deducted from FIFO cost were $39.0 million and $38.7 million as of December 31, 2018 and 2017, respectively. Assume that Harley's tax rate is at 20%. Required 1. Indicate whether each of the following financial measurements would have been higher, lower, or unaffected had Harley used FIFO to value its inventory in 2018. Explain the reasoning behind your answers: a. Gross profit rate b. Reported net income c. Current ratio d. Inventory turnover rate c. f. Accounts receivable turnover rate Cash payments made to suppliers for inventory g. Net cash flow from operations