sCruz 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.LIFO inventoryLIFO cost of goods soldFIFO inventoryFIFO cost of goods sold iCurrent assets (using LIFO)Current assets (using FIFO)Current liabilities1106451801801701. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers.Year 2$ 160740240660220300200Current raboInventory tumoverDays' sales in inventory(a) Compute its current ratio, Inventory turnover, and days' sales in inventory for Year 2 using LIFOnumbers.DenominatorCurrent ratioInventory turnoverhave sales in invandrnYear 1$ 110680Numerator(b) Computa its current ratio, inventory turnover, and days' sales in inventory for Year 2 uning FIFOnumbers.DenominatorRatioNumeratorRatio

Current ratio is one of liquidity ratio being used in business. It shows how much current assets are…

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. LITO inventory LIFO cost of goods sold FIFO inventory Year 2 $160 740 110 645 100 FIFO cest of goods sold Current assets (using LIFO) Current assets (using FIFO) Current liabilities 180 170 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. Current rabo Inventory tumover Days' sales in inventory a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers Denominator Ratio Current ratio Inventory tumover 240 660 220 300 200 Numerator Year 1 $ 110 680 b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers Denominator Ratio Numerator

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. LITO inventory LIFO cost of goods sold FIFO inventory Year 2 $160 740 110 645 100 FIFO cest of goods sold Current assets (using LIFO) Current assets (using FIFO) Current liabilities 180 170 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. Current rabo Inventory tumover Days' sales in inventory a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers Denominator Ratio Current ratio Inventory tumover 240 660 220 300 200 Numerator Year 1 $ 110 680 b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers Denominator Ratio Numerator

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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