Ag-Chem Equipment Co. Inc., headquartered in Minnetonka, Minnesota, manufactures a full line of equipment that is used to apply fertilizer. Many of these systems are computer controlled. This information is available for Ag-Chem for 1998. Ag-Chem uses the LIFO inventory method.

Instructions ne Calculate the inventory turnover ratio, days in inventory, and current ratio for Ag-Chem for 1998 as follows:

(a) Based on LIFO.

(b) After adjusting for the LIFO reserve.

(c) Comment on any difference between parts

(a) and (b).

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(in thousands) 1998 Beginning inventory $ 99,894 Ending inventory 101,751 Beginning LIFO reserve 12,454 Ending LIFO reserve 12,006 Current assets 134,045 Current liabilities 57,871 Cost of goods sold 234,959 Sales 322,122