Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello

Exercise 50

Ford Motor Company uses FIFO and LIFO to account for different segments of its inventories. note to the company's most recent financial statements indicated that if FIFO had been used for the entire inventory, the total amount of inventory would have been almost $1 billion higher ($8.3 million vs.7.3 billion).
a.ndicate whether each of the following financial measurements would have been higher, lower, or unaffected had Ford Motor Company used FIFO for its entire inventory.xplain the reasoning behind your answers.
1.ross profit rate.
2.eported net income.
3.urrent ratio ( Ford 's current ratio is greater than 1 to 1).
4.nventory turnover rate.
5.ccounts receivable turnover rate.
6.ash payments made to suppliers.
7.et cash flow from operations ( Ford 's operating cash flows are positive).
b.rovide your own assessment of whether using LIFO has made Ford Motor Company more or less (1) liquid and (2) well-off.efend your answers.