Homework Help is Here – Start Your Trial Now!
Business
Accounting
Exercise 5-18 (Static) 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 FIFO for comparison purposes. Year 2 $ 160 740 240 660 220 FIFO cost of goods sold Current assets (using LIFO) Current assets (using FIFO) Current liabilities 300 200 1. Compute its current ratio, Inventory turnover, and days' sales in Inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. LIFO inventory LIFO cost of goods sold FIFO inventory Current ratio Inventory turnover Days' sales in inventory (a) Compute its current ratio, Inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Ratio Numerator Current ratio Inventory turnover Days' sales in inventory Year 1 $ 110 680 110 645 180 180 170 Numerator (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Ratio Denominator Denominator

Exercise 5-18 (Static) 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 FIFO for comparison purposes. Year 2 $ 160 740 240 660 220 FIFO cost of goods sold Current assets (using LIFO) Current assets (using FIFO) Current liabilities 300 200 1. Compute its current ratio, Inventory turnover, and days' sales in Inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. LIFO inventory LIFO cost of goods sold FIFO inventory Current ratio Inventory turnover Days' sales in inventory (a) Compute its current ratio, Inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Ratio Numerator Current ratio Inventory turnover Days' sales in inventory Year 1 $ 110 680 110 645 180 180 170 Numerator (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Ratio Denominator Denominator

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Don't provide answers in image format
Exercise 5-18 (Static) 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 FIFO for comparison purposes. LIFO inventory LIFO cost of goods sold FIFO inventory Year 2 $ 160 740 240 180 FIFO cost of goods sold. Current assets (using LIFO) Current assets (using FIPO) Current liabilition 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 ratio Inventory turnover Days' sales in inventory (a) Compute its current ratio, Inventory turnover, and days' sales in Inventory for Year 2 using LIFO numbers. Denominator Current ratio Inventory turnover Days' sales in inventory Numerator Year 1 $ 110 680 110 645 660 220 300 200 Numerator (b) Compute its current ratio, Inventory turnover, and days' sales in Inventory for Year 2 using FIFO numbers. Denominator Ratio Ratio
Transcribed Image Text:Exercise 5-18 (Static) 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 FIFO for comparison purposes. LIFO inventory LIFO cost of goods sold FIFO inventory Year 2 $ 160 740 240 180 FIFO cost of goods sold. Current assets (using LIFO) Current assets (using FIPO) Current liabilition 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 ratio Inventory turnover Days' sales in inventory (a) Compute its current ratio, Inventory turnover, and days' sales in Inventory for Year 2 using LIFO numbers. Denominator Current ratio Inventory turnover Days' sales in inventory Numerator Year 1 $ 110 680 110 645 660 220 300 200 Numerator (b) Compute its current ratio, Inventory turnover, and days' sales in Inventory for Year 2 using FIFO numbers. Denominator Ratio Ratio
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost allocation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS