This information is available for Paisley Corporation for 1997, 1998, and 1999 Paisley uses the LIFO inventory method.

\section*{Instructions}
Calculate the inventory turnover ratio, days in inventory, and current ratio for Paisley Corporation for 1997, 1998, and 1999 as follows:

(a) Based on LIFO

(b) After adjusting for the LIFO reserve

(c) Comment on any difference between parts

(a) and (b).

Transcribed Image Text:

1997 Beginning inventory Ending inventory Beginning LIFO reserve $ 300,000 1998 $ 350,000 1999 $ 500,000 350,000 500,000 600,000 250,000 270,000 300,000 Ending LIFO reserve 270,000 300,000 340,000 Current assets 500,000 650,000 800,000 Current liabilities 300,000 900,000 1,000,000 Cost of goods sold 1,000,000 1,420,000 1,550,000 Sales 1,200,000 1,600,000 1,900,000