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.