Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes. LIFO inventory LIFO cost of goods sold FIFO inventory FIFO cost of goods sold Current assets (using LIFO) Current assets (using FIFO) Current liabilities 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. Current ratio Inventory turnover Days' sales in inventory (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Numerator 1 Current ratio Inventory turnover Days' sales in inventory $ $ $ Year 2 $ 180 760 250 715 240 310 175 ✔ Numerator 1 7 $ S $ Year 1 $ 130 700 155 700 210 235 155 Denominator $ $ $ (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Denominator $ $ $ = Ratio to 1 times days = Ratio to 1 times days

Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes. LIFO inventory LIFO cost of goods sold FIFO inventory FIFO cost of goods sold Current assets (using LIFO) Current assets (using FIFO) Current liabilities 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. Current ratio Inventory turnover Days' sales in inventory (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Numerator 1 Current ratio Inventory turnover Days' sales in inventory $ $ $ Year 2 $ 180 760 250 715 240 310 175 ✔ Numerator 1 7 $ S $ Year 1 $ 130 700 155 700 210 235 155 Denominator $ $ $ (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Denominator $ $ $ = Ratio to 1 times days = Ratio to 1 times days

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 24CE: Inventory Costing: Average Cost Refer to the information for Filimonov Inc. and assume that the...

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