FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of
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 number
Current ratio
Inventory turnover
Days' sales in inventory
Answer is not complete.
(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO
numbers.
Current ratio
Inventory turnover
Days' sales in inventory
Current ratio
Inventory turnover
Days' sales in inventory
$
$
$
$
Year 2
$ 290
870
360
825
350
420
170
Numerator 1 Denominator
350.0 / $
$
870.0
111.0 X
$
$
$
Numerator 1
350.0 /
(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO
numbers.
Denominator
170.0
265.0
870.0
Numerator
$
$
$
Year 1
$240
810
265
810
320
345
150
870.0 / $
111.0/ $
1
420.0/
825.01
312.5/
170.0
265.0
870.0
X Answer is not complete.
$
$
$
Denominator
=
(b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO
numbers.
170.0
312.5
825.0
=
=
21
3.3
0.1
Ħ
=
Ratio
to 1
times.
days
=
2.1
3.3
0.1
Ratio
to 1
2.5
2.6
0.4
times
days
Ratio
to 1
times
days
expand button
Transcribed Image Text:Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of 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 number Current ratio Inventory turnover Days' sales in inventory Answer is not complete. (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Current ratio Inventory turnover Days' sales in inventory Current ratio Inventory turnover Days' sales in inventory $ $ $ $ Year 2 $ 290 870 360 825 350 420 170 Numerator 1 Denominator 350.0 / $ $ 870.0 111.0 X $ $ $ Numerator 1 350.0 / (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Denominator 170.0 265.0 870.0 Numerator $ $ $ Year 1 $240 810 265 810 320 345 150 870.0 / $ 111.0/ $ 1 420.0/ 825.01 312.5/ 170.0 265.0 870.0 X Answer is not complete. $ $ $ Denominator = (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. 170.0 312.5 825.0 = = 21 3.3 0.1 Ħ = Ratio to 1 times. days = 2.1 3.3 0.1 Ratio to 1 2.5 2.6 0.4 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
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 number
Current ratio
Inventory turnover
Days' sales in inventory
Answer is not complete.
(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO
numbers.
Current ratio
Inventory turnover
Days' sales in inventory
Current ratio
Inventory turnover
Days' sales in inventory
$
$
$
$
Year 2
$ 290
870
360
825
350
420
170
Numerator 1 Denominator
350.0 / $
$
870.0
111.0 X
$
$
$
Numerator 1
350.0 /
(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO
numbers.
Denominator
170.0
265.0
870.0
Numerator
$
$
$
Year 1
$240
810
265
810
320
345
150
870.0 / $
111.0/ $
1
420.0/
825.01
312.5/
170.0
265.0
870.0
X Answer is not complete.
$
$
$
Denominator
=
(b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO
numbers.
170.0
312.5
825.0
=
=
21
3.3
0.1
Ħ
=
Ratio
to 1
times.
days
=
2.1
3.3
0.1
Ratio
to 1
2.5
2.6
0.4
times
days
Ratio
to 1
times
days
expand button
Transcribed Image Text:Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of 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 number Current ratio Inventory turnover Days' sales in inventory Answer is not complete. (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Current ratio Inventory turnover Days' sales in inventory Current ratio Inventory turnover Days' sales in inventory $ $ $ $ Year 2 $ 290 870 360 825 350 420 170 Numerator 1 Denominator 350.0 / $ $ 870.0 111.0 X $ $ $ Numerator 1 350.0 / (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Denominator 170.0 265.0 870.0 Numerator $ $ $ Year 1 $240 810 265 810 320 345 150 870.0 / $ 111.0/ $ 1 420.0/ 825.01 312.5/ 170.0 265.0 870.0 X Answer is not complete. $ $ $ Denominator = (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. 170.0 312.5 825.0 = = 21 3.3 0.1 Ħ = Ratio to 1 times. days = 2.1 3.3 0.1 Ratio to 1 2.5 2.6 0.4 times days Ratio to 1 times days
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