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. LIPO Laventory 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 Year 2 $190 720 260 725 250 320 170 (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Numerator Denominator Year 1 $ 140 716 165 710 220 245 150 Current ratio inventory turnover Days' sales in inventory Numerator Ratio (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Denominator 0 0 0 Ratio 0 0 D

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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5
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.
Current ratio
Inventory turnover
Days' sales in inventory
LIPO inventory
LIFO cost of goods sold
FIFO inventory
FIFO cost of goods sold i
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.
Year 2
$ 190
770
260
Numerator
Current ratio
Inventory turnover
Days' sales in inventory
Year 1
$ 140
710
725
250
320
170
Numerator
(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO
numbers.
Denominator
Seved
165
710
220
245
150
Denominator
(b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO
numbers.
Ratio
0
0
0
Ratio
0
0
D
Transcribed Image Text:5 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. Current ratio Inventory turnover Days' sales in inventory LIPO inventory LIFO cost of goods sold FIFO inventory FIFO cost of goods sold i 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. Year 2 $ 190 770 260 Numerator Current ratio Inventory turnover Days' sales in inventory Year 1 $ 140 710 725 250 320 170 Numerator (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Denominator Seved 165 710 220 245 150 Denominator (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Ratio 0 0 0 Ratio 0 0 D
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