Exercise 5-18 (Algo) Comparing LIFO numbers to FIFO numbers; ratio analysis LO A3 Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFQ 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 Current ratio Inventory turnover Days' sales in inventory Year 2 $ 290 870 360 810 320 345 150 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. 825 350 420 170 (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Denominator Numerator Current ratio Inventory turnover Days' sales in inventory Year 1 $ 240 810 265 Numerator / Denominator = 0 0 0 (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Ratio 0 0 0 Ratio

FINANCIAL ACCOUNTING
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Exercise 5-18 (Algo) Comparing LIFO numbers to FIFO numbers; ratio analysis LO A3
Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods
sold using FIFQ for comparison purposes.
Year 2
$ 290
870
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 numbers.
Current ratio
Inventory turnover
Days' sales in inventory
360
825
350
420
170
(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO
numbers.
Numerator /Denominator
Current ratio
Inventory turnover
Days' sales in inventory
Year 1
$ 240
810
265
810
320
345
150
Numerator / Denominator
(b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO
numbers.
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Transcribed Image Text:5 S xipped Book Hint Print erences : aw 1 Exercise 5-18 (Algo) Comparing LIFO numbers to FIFO numbers; ratio analysis LO A3 Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFQ for comparison purposes. Year 2 $ 290 870 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 numbers. Current ratio Inventory turnover Days' sales in inventory 360 825 350 420 170 (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Numerator /Denominator Current ratio Inventory turnover Days' sales in inventory Year 1 $ 240 810 265 810 320 345 150 Numerator / Denominator (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. < Prev 0 0 0 5 of 9 0 Ratio 0 0 Ratio HH II Next > Che
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