Price T other things being equal, if a LIFO liquidation occurs during a period of rising prices, which of the following statements about the effects on a firm's financial statements is generally true? Question 5 1. Cost of goods sold increases. II. Gross profit margin increases. III. Taxes decrease. IV. Net income increasex A. I only B. II only C. I and III only D. II and IV only Beginning inventory + cost of goods purchase cost of goods available for salet - Ending inventory COGS Sales Revenne cotts - Gross Profit Expense Net income