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 LIFO inventory $ 350 Year 1 $ 300 LIFO cost of goods sold 930 870 FIFO inventory 420 325 FIFO cost of goods sold 885 870 Current assets (using LIFO) 410 380 Current assets (using FIFO) Current liabilities 480 405 165 145 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. Current ratio Numera+r / Denominator 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. Current ratio Inventory turnover Days' sales in inventory Numerator / Denominator Ratio

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 LIFO inventory $ 350 Year 1 $ 300 LIFO cost of goods sold 930 870 FIFO inventory 420 325 FIFO cost of goods sold 885 870 Current assets (using LIFO) 410 380 Current assets (using FIFO) Current liabilities 480 405 165 145 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. Current ratio Numera+r / Denominator 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. Current ratio Inventory turnover Days' sales in inventory Numerator / Denominator Ratio

Name: 2 Cruz Company uses LIFO for inventory costing and reports the followi
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Description: 2 Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goodssold using FIFO for comparison purposes.Year 2LIFO inventory$ 350Year 1$ 300LIFO cost of goods sold930870FIFO inven

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 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...

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