The current ratio is Current Assets / Current Liabilities. If the company changes from FIFO to LIFO during a period of inflation, inventory will decrease because the inventory on the balance sheet will consist of units purchased first, when the costs were lower. When Inventory decreases, Current Assets will decrease as well. If the numerator of the current ratio decreases while the denominator stays the same, the Current Ratio will decrease. The inventory turnover ratio is Annual COGS / Average Inventory. If the company changes from FIFO to LIFO during a period of inflation, inventory will decrease and COGS will increase. Inventory will decrease because the inventory on the balance sheet will consist of units purchased or manufactured first, when the costs were lower. COGS will increase because the units sold will be the last units purchased, when costs were higher. If the numerator of the inventory turnover ratio increases and the denominator decreases, the inventory turnover ratio will increase. The current ratio is Current Assets / Current Liabilities. If the company changes from FIFO to LIFO during a period of inflation, inventory will decrease because the inventory on the balance sheet will consist of units purchased first, when the costs were lower. When Inventory decreases, Current Assets will decrease as well. If the numerator of the current ratio decreases while the denominator stays the same, the Current Ratio will decrease. The inventory turnover ratio is Annual COGS / Average Inventory. If the company changes from FIFO to LIFO during a period of inflation, inventory will decrease and COGS will increase. Inventory will decrease because the inventory on the balance sheet will consist of units purchased or manufactured first, when the costs were lower. COGS will increase because the units sold will be the last units purchased, when costs were higher. If the numerator of the inventory turnover ratio increases and the denominator decreases, the inventory turnover ratio will increase. The current ratio is Current Assets / Current Liabilities. If the company changes from FIFO to LIFO during a period of inflation, inventory will decrease because the inventory on the balance sheet will consist of units purchased first, when the costs were lower. When Inventory decreases, Current Assets will decrease as well. If the numerator of the current ratio decreases while the denominator stays the same, the Current Ratio will decrease. The inventory turnover ratio is Annual COGS / Average Inventory. If the company changes from FIFO to LIFO during a period of inflation, inventory will decrease and COGS will increase. Inventory will decrease because the inventory on the balance sheet will consist of units purchased or manufactured first, when the costs were lower. COGS will increase because the units sold will be the last units purchased, when costs were higher. If the numerator of the inventory turnover ratio increases and the denominator decreases, the inventory turnover ratio will increase. The current ratio is Current Assets / Current Liabilities. If the company changes from FIFO to LIFO during a period of inflation, inventory will decrease because the inventory on the balance sheet will consist of units purchased first, when the costs were lower. When Inventory decreases, Current Assets will decrease as well. If the numerator of the current ratio decreases while the denominator stays the same, the Current Ratio will decrease. The inventory turnover ratio is Annual COGS / Average Inventory. If the company changes from FIFO to LIFO during a period of inflation, inventory will decrease and COGS will increase. Inventory will decrease because the inventory on the balance sheet will consist of units purchased or manufactured first, when the costs were lower. COGS will increase because the units sold will be the last units purchased, when costs were higher. If the numerator of the inventory turnover ratio increases and the denominator decreases, the inventory turnover ratio will increase.
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