Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost ofsold using FIFO for comparison purposes.LIFO 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 numberCurrent ratioInventory turnoverDays' sales in inventoryAnswer is not complete.(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFOnumbers.Current ratioInventory turnoverDays' sales in inventoryCurrent ratioInventory turnoverDays' sales in inventory$$$$Year 2$ 290870360825350420170Numerator 1 Denominator350.0 / $$870.0111.0 X$$$Numerator 1350.0 /(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFOnumbers.Denominator170.0265.0870.0Numerator$$$Year 1$240810265810320345150870.0 / $111.0/ $1420.0/825.01312.5/170.0265.0870.0X Answer is not complete.$$$Denominator=(b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFOnumbers.170.0312.5825.0==213.30.1Ħ=Ratioto 1times.days=2.13.30.1Ratioto 12.52.60.4timesdaysRatioto 1timesdays Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost ofsold using FIFO for comparison purposes.LIFO inventoryLIFO cost of goods soldFIFO inventoryFIFO cost of goods soldCurrent assets (using LIFO)Current assets (using FIFO)Current liabilities1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numberCurrent ratioInventory turnoverDays' sales in inventoryAnswer is not complete.(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFOnumbers.Current ratioInventory turnoverDays' sales in inventoryCurrent ratioInventory turnoverDays' sales in inventory$$$$Year 2$ 290870360825350420170Numerator 1 Denominator350.0 / $$870.0111.0 X$$$Numerator 1350.0 /(a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFOnumbers.Denominator170.0265.0870.0Numerator$$$Year 1$240810265810320345150870.0 / $111.0/ $1420.0/825.01312.5/170.0265.0870.0X Answer is not complete.$$$Denominator=(b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFOnumbers.170.0312.5825.0==213.30.1Ħ=Ratioto 1times.days=2.13.30.1Ratioto 12.52.60.4timesdaysRatioto 1timesdays

Days Sale in inventory is the number of days to sell inventory.

goods sold mtory of goods sold ssets (using LIFO) ssets (using FIFO) iabilities 870 360 825 350 420 170 810 265 810 320 345 150 its current ratio, inventory turnover, and days' sales in inventory for Ye Answer is not complete.

goods sold mtory of goods sold ssets (using LIFO) ssets (using FIFO) iabilities 870 360 825 350 420 170 810 265 810 320 345 150 its current ratio, inventory turnover, and days' sales in inventory for Ye Answer is not complete.

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 44E: Perpetual and Periodic Inventory Systems Below is a list of inventory systems options. a. Perpetual...

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Similar questions

Use the last-in, first-out (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the first-in, first-out (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for A75 Company, considering the following transactions.
Use the last-in, first-out method (LIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Use the first-in, first-out method (FIFO) cost allocation method, with perpetual inventory updating, to calculate (a) sales revenue, (b) cost of goods sold, and c) gross margin for B75 Company, considering the following transactions.
Compute Westtown Companys (A) inventory turnover ratio and (B) number of days sales in inventory ratio, using the following information.
Compare the calculations for gross margin for A76 Company, based on the results of the perpetual inventory calculations using FIFO, LIFO, and AVG.
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for weighted average (AVG).
Calculate a) cost of goods sold, b) ending inventory, and c) gross margin for A76 Company, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for first-in, first-out (FIFO).
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Based on the data in Exercise 6-15 part (a) and assuming that cost was determined by the FIFO method, show how the inventory would appear on the balance sheet.