thisisbrianly

varundarji,

I'm going to give you the benefit of the doubt and assume that you aren't trolling.

1. If prices are rising then COGS will be higher under LIFO
2. If COGS are higher gross income is lower
3. If gross income is lower and taxes are a percentage of gross income you will pay less taxes under LIFO
4. Taxes are a REAL cash outflow
5. If the taxes (a REAL CASH OUTFLOW) are lower and everything else is the same then our total cash flows will be higher