Unger Company uses the LIFO inventory costing method to value inventory. The following financial data were obtained from its accounting records for the current year:

Compute

(a) the current ratio assuming (i) LIFO and (ii) FIFO 

(b) the LIFO inventory reserve.

Transcribed Image Text:

Current assets (including inventory). $4,000 Current liabilities.... 2,000 Inventory under LIFO 575 Inventory under FIFO. 775