Why would a debt investor (e.g., a bank) insist on a loan contract specifying that total liabilities divided by total assets cannot exceed a certain percentage or that dividends paid to stockholders cannot exceed a certain percentage of net income? Suppose that Acme Custom Design is in danger of violating a loan contract stating that total liabilities divided by total assets (as measured by generally accepted accounting principles) cannot exceed 50 percent. If FIFO, an acceptable method for valuing inventory assets, results in a higher asset valuation than LIFO, another acceptable method, which of the two meth¬ ods would Acme’s management be likely to prefer?