What if the bank based its decision on cash flows associated with the inventory costing valuation method the company uses?

Inventory Valuation and Credit
To begin, read the following scenario:
Company 1 and Company 2 are online retailers. Both companies are
basically identical and follow the same accounting practices except that
Company A uses LIFO and Company B uses FIFO to value their inventory.
Because of rising inventory costs, both companies need additional
capital to manage their operations.
For your initial discussion post, reflect on these questions:
If Company A and Company B apply for a loan at their local bank and
the bank bases its decision on net income, which company is more likely
to obtain the loan? Explain.
What if the bank based its decision on cash flows associated with
the inventory costing valuation method the company uses? Which company
might be better positioned to obtain the loan? Elaborate your responses
and provide an example as needed to support your assessment.
For your responses, focus on the following questions: Do you agree
with your classmates’ responses as far as which company might obtain the
loan if the bank bases its decision on net income and/or cash flows?
Why or why not? How has the discussion impacted your understanding of
the effects of FIFO and LIFO inventory methods on net income and cash
flows? Support your responses to classmates with additional research
and/or examples of your understanding of these inventory valuation
methods.
Be sure to post at least one reference in support of your explanations and conclusions.

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