Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goodssold using FIFO for comparison purposes.Year 2$ 320900390855LIFO inventoryLIFO cost of goods soldFIFO inventoryFIFO cost of goods soldCurrent assets (using LIFO)Current assets (using FIFO)Current liabilities1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers.Current ratioInventory turnoverDays' sales in inventoryYear 1$ 270840380450180Current ratioInventory turnoverDays' sales in inventory(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFOnumbers.Numerator / Denominator295840350375160Numerator / Denominator(b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFOnumbers.Ratio000Ratio000

The objective of the question is to calculate the current ratio, inventory turnover, and days' sales…

Answered: Cruz Company uses LIFO for inventory…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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