PQR Corporation uses the LIFO method for inventory costing. For the fiscal year ended December 31, 2023, the following information is provided:

• Beginning Inventory: 1,200 units at $15 per unit
• Purchases:
  • April 1: 1,500 units at $18 per unit
  • October 1: 2,000 units at $20 per unit

• Sales:
  • 3,500 units sold during the year

• Ending Inventory: 1,200 units

a. Calculate the cost of goods sold (COGS) using the LIFO method. b. Determine the value of ending inventory using the LIFO method. c. Analyze how the LIFO method affects the company’s income tax liability. d. Discuss the impact of using LIFO on the company’s financial ratios.