Cruz Company uses LIFO for Inventory costing and reports the following financial data. It also recomputed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 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 Year 2 $ 260 840 330 795 320 390 185 (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Numerator / Denominator Year 1 $ 210 780 235 780 290 315 165 Current ratio Inventory turnover Days' sales in inventory Numerator (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Denominator Ratio 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. 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 Year 2 $ 260 840 330 795 320 390 185 (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Numerator / Denominator Year 1 $ 210 780 235 780 290 315 165 Current ratio Inventory turnover Days' sales in inventory Numerator (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Denominator Ratio Ratio
Expert Answer:
Answer rating: 100% (QA)
LIFO Current Ratio Current Asset Current Liabilities 390 185 211 Inven... View the full answer
Related Book For
Biochemistry Concepts and Connections
ISBN: 978-0321839923
1st edition
Authors: Dean R. Appling, Spencer J. Anthony-Cahill, Christopher K. Mathews
Posted Date:
Students also viewed these accounting questions
-
Monarch Products, Inc. provided the following information from its current-year trial balance. (Click the icon to view the trial balance.) Requirements Prepare a single-step income statement for the...
-
Fill in the blue cells above. How could you defer $40,000 in weekly expenses for one week in the middle of the project? Compare Figure Early - Late Weekly Weekly Cumulative Cumulative Cumulative...
-
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows. January February Sales $ 421,200 $ 468,000 Direct materials purchases 140,400 146,250...
-
Solve each system using the substitution method. If a system is inconsistent or has dependent equations, say so. -5x + 2y = -2 x + 6y = 26
-
The following list includes a series of accounts for B- ball Corporation, which has been operating for three years. These accounts are listed alphabetically and numbered for identification. Following...
-
In Exercises plot the point in polar coordinates and find the corresponding rectangular coordinates for the point. 8,
-
When someone is feeling anger toward something that a co-worker did she is experiencing a/an ____________, but when someone is just having a bad day overall he is experiencing a/an ____________. (a)...
-
Analyzing Items to Be Included in Inventory Walker Company has just completed a physical inventory count at year-end, December 31, 2011. Only the items on the shelves, in storage, and in the...
-
Chapter 9 Plant Assets (a) Faster Company purchased equipment in 20x1 for $104,000 and estimated an $8,000 salvage value at the end of the equipment's 10-year useful life. On December 31, 20x7, there...
-
1. Sharps Sandwich Shop has two conflicting quality issues speed and freshness. The premade sandwich system enhances speed; however, it has the potential of affecting freshness. What type of system...
-
A 50 kg athlete running at a speed v grabs a light rope that hangs from a 10 m high platform and swings to a maximum of 1.8 m above the ground. Later, a 100 kg athlete, running at the same speed,...
-
What is the future value in 27 years of an ordinary annuity cash flow of $704 every quarter of a year at the end of the period, at an annual interest rate of 8.89 percent per year, compounded...
-
Suppose a company has created the following production budget: Month Budgeted Production February 4 5 , 0 0 0 units March 7 5 , 0 0 0 units April 6 0 , 0 0 0 units May 8 0 , 0 0 0 units Each unit...
-
Discuss the relationship between the CEO and Board of Directors. Open the discussion by explaining distinctions, or overlap, between these roles, for instance, if the CEO is also the board chair....
-
4. Draw a resonance structure for each of the molecules below, indicating any formal charges and lone pair electrons. Draw all necessary curved arrows to show two- electron movement to generate the...
-
Compute the cost of capital for each of the following sources of financing: a. A new common stock issue by a firm that paid a $1.80 dividend last year. The firm's dividends are expected to continue...
-
Mr. Sanchez, Mr. Gonzalez, and Mr. Perez share income in their partnership on a 5:3:2 basis. They have capital balances of $34,000, $26,000, and $21,000, respectively. Mr. Navarro is admitted as a...
-
What is the shape of the exponential distribution?
-
Why would phage need to synthesize more cI repressor during establishment of lysogeny, early in infection, rather than in maintenance of the lysogenic state?
-
In some reactions, in which a protein molecule is binding to a specific site on DNA a rate greater than that predicted by the diffusion limit is observed. Suggest an explanation.
-
Explain how a gene knockdown reagent, such as RNAi or a morpholino, could interfere with expression of a gene without affecting the rate of transcription of the target gene.
-
Tektronix, Inc., an Oregon-based MNE, manufactures scientific instruments. Jerry Davies, Treasurer, needs to choose an instrument to hedge a \( 2,000,000\) sale to Siemens in Germany, with payment...
-
Call Options on British Pounds (Option.xls) The set of assumptions used throughout the second half of this chapter assumed a spot rate of \(\$ 1.70 / \), a 90 -day maturity, U.S. dollar and British...
-
Jos Ballini is a currency trader and speculator for Bozano Simonsen, one of the largest investment banking firms in So Paulo. The current spot rate is \(\mathrm{R} \$ 1.7800 / \$\), and the 360 -day...
How To Power Tune Jaguar XK 3.4 3.8 And 4.2 Litre Engines 1st Edition - ISBN: 1845849604 - Free Book
Study smarter with the SolutionInn App