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The LIFO Inventory Reserve Midwestern Steel Company uses the LIFO inventory costing method to value its ending inventory. The following data were obtained from the company's accounting records: Current assets (under FIFO) $40,000,000 Current liabilities 28,600,000 Inventory under LIFO 9,400,000 Inventory under FIFO 12,960,000 Calculate the company's (a) LIFO inventory reserve and (b) the current ratio assuming (i) FIFO and (ii) LIFO. Round ratio to two decimals. (a) LIFO inventory reserve $ (b) Current ratio Check FIFO LIFO

The LIFO Inventory Reserve Midwestern Steel Company uses the LIFO inventory costing method to value its ending inventory. The following data were obtained from the company's accounting records: Current assets (under FIFO) $40,000,000 Current liabilities 28,600,000 Inventory under LIFO 9,400,000 Inventory under FIFO 12,960,000 Calculate the company's (a) LIFO inventory reserve and (b) the current ratio assuming (i) FIFO and (ii) LIFO. Round ratio to two decimals. (a) LIFO inventory reserve $ (b) Current ratio Check FIFO LIFO

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The LIFO Inventory Reserve Midwestern Steel Company uses the LIFO inventory costing method to value its ending inventory. The following data were obtained from the company's accounting records: Current assets (under FIFO) $40,000,000 Current liabilities 28,600,000 Inventory under LIFO Inventory under FIFO Calculate the company's (a) LIFO inventory reserve and (b) the current ratio assuming (i) FIFO and (ii) LIFO. Round ratio to two decimals. (a) LIFO inventory reserve $ (b) Current ratio 9,400,000 12,960,000 Check FIFO LIFO
Transcribed Image Text:The LIFO Inventory Reserve Midwestern Steel Company uses the LIFO inventory costing method to value its ending inventory. The following data were obtained from the company's accounting records: Current assets (under FIFO) $40,000,000 Current liabilities 28,600,000 Inventory under LIFO Inventory under FIFO Calculate the company's (a) LIFO inventory reserve and (b) the current ratio assuming (i) FIFO and (ii) LIFO. Round ratio to two decimals. (a) LIFO inventory reserve $ (b) Current ratio 9,400,000 12,960,000 Check FIFO LIFO
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