Cruz Company uses LIFO Tor inventory costing and reports trhe folOwing iinanIcial dala. Il aiso recompuled inventory and Cost of goods sold using FIFO for comparison purposes. Year 2 Year 1 $ 170 $ 120 690 LIFO inventory LIFO cost of goods sold FIFO inventory FIFO cost of goods sold Current assets (using LIFO) Current assets (using FIFO) Current liabilities 750 240 145 705 690 230 200 300 225 180 160 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Numerator I Denominator Ratio Current ratio Inventory turnover Days' sales in inventory (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Numerator I Denominator Ratio Current ratio Inventory turnover Days' sales in inventory

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cruz Company uses LIFO for Inventory costing and reports the TOllowing thancial data. It also recomputed Inventory and cost of goods
sold using FIFO for comparison purposes.
Year 2
Year 1
LIFO inventory
$ 170
$ 120
LIFO cost of goods sold
FIFO inventory
FIFO cost of goods sold
Current assets (using LIFO)
Current assets (using FIFO)
750
690
240
145
705
690
230
200
300
225
Current liabilities
180
160
1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers.
(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO
numbers.
es
Numerator
Denominator
Ratio
Current ratio
Inventory turnover
Days' sales in inventory
(b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO
numbers.
Numerator
Denominator
Ratio
Current ratio
Inventory turnover
Days' sales in inventory
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Transcribed Image Text:Cruz Company uses LIFO for Inventory costing and reports the TOllowing thancial data. It also recomputed Inventory and cost of goods sold using FIFO for comparison purposes. Year 2 Year 1 LIFO inventory $ 170 $ 120 LIFO cost of goods sold FIFO inventory FIFO cost of goods sold Current assets (using LIFO) Current assets (using FIFO) 750 690 240 145 705 690 230 200 300 225 Current liabilities 180 160 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. es Numerator Denominator Ratio Current ratio Inventory turnover Days' sales in inventory (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Numerator Denominator Ratio Current ratio Inventory turnover Days' sales in inventory < Prev 1 of 1 Next
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