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Nevis Corporation operates in an industry where costs are falling.

Nevis Corporation operates in an industry where costs are falling. The company is considering changing its inventory method from FIFO to LIFO and wants to determine the impact that the change would have on selected accounting ratios in future years.

What impact would you expect on the following ratios:

Net profit margin
Remain the same, decrease, increase

Fixed asset turnover
Remain the same, Decrease, Increase

Current ratio
Remain the same, decrease, increase


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