LO3. How are the financial statements affected by using different inventory costing methods a) When inventory costs are rising, (LIFO or FIFO) results in the highest cost of goods sold. b) When inventory costs are rising, _(LIFO or FIFO results in the lowest net income. LO6. How do we use inventory turnover and days' sales in inventory to evaluate business performance a) What are the formulas for inventory turnover and days' sales in inventory? b) Calculate the inventory turnover and days' sales in inventory based on the information below (show work): Cost of goods sold $11,000 Beginning merchandise inventory 4,000 Ending merchandise inventory 3,000