Please number and follow the instructions to respond to the questions provided below (again):

1. In ONE sentence, define what FIFO is. No explanation, please. 2. In ONE sentence, define what LIFO is. No explanation, please. 3. In a rising prices environment, and in not more than two sentences, explain the effect (increase or decrease) of FIFO on: a. Cost of goods sold. b. Ending inventory. c. Net income. d. Amount of income tax. 4. In a rising prices environment, and in not more than two sentences, explain the effect (increase or decrease) of LIFO on: a. Cost of goods sold. b. Ending inventory. c. Net income. d. Amount of income tax. 5. In not more than FOUR sentences, indicate and explain which of the two methods (FIFO or LIFO) Ms. Grayson should choose for her company.

Please number your answers as indicated above. Please follow the instructions and make sure you stay with the topic.