ABC Company is a retailer dealing with a single product. Beginning inventory in January 1, consisting of 900 units at $17 per unit. The following purchases are made during the year: Units Per Unit January 20 100 $15 March 1 300 14 June 10 600 13 October 25 300 12 December 14 500 10 Total 1,800 The ending inventory on December 31 is 700 units. Required: If current assets, excluding inventories (ug üwų), amount to $52,000, and Current liabilities amount to $30,000, and long-term liabilities equal $16,000. The current ratio under the LIFO method is:

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter8: Inventories: Special Valuation Issues
Section: Chapter Questions
Problem 11RE: Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year,...
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ABC Company is a retailer dealing with a single product. Beginning inventory in January 1, consisting of 900 units at $17 per unit. The following purchases are made during the year: Units Per Unit January 20 100 $15 March 1 300 14 June 10 600 13 October 25 300 12 December 14 500 10 Total 1,800 The ending inventory on December 31 is 700 units. Required: If current assets, excluding inventories (ug üwų), amount to $52,000, and Current liabilities amount to $30,000, and long-term liabilities equal $16,000. The current ratio under the LIFO method is:

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