Sales revenue $1,000,000
Cost of goods sold 600,000
Gross margin 400,000
Operating expenses 250,000
Income before income taxes $150,000
*based on an ending FIFO inventory of $250,000

The income tax rate is 40%. The controller of the company is considering a switch from FIFO to LIFO. He has determined that on LIFO basis, the ending inventory would have been $180,000.

What effect, if any, would the proposed change have on income tax expense? Net income? Cash flow?