CORRECT ANSWER C. GLOBETRADE’S CURRENT RATIO WOULD DECREASE AS A...
58.
Correct answer c. Globetrade’s current ratio would decrease as a result of the change to
LIFO because the value of ending inventory would be lower thus decreasing the firm’s
current assets. Globetrade’s inventory turnover ratio would increase as a result of the
change to LIFO because the cost of goods sold would increase.