This information is available for the Automotive and Electronics Divisions of General Motors Corporation for 1998. General Motors uses the LIFO inventory method.

Instructions Calculate the inventory turnover ratio, days in inventory, and current ratio for General Motors Corporation 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).

Transcribed Image Text:

(in millions) 1998 Beginning inventory $ 12,102 Ending inventory 12,207 Beginning LIFO reserve 2,268 Ending LIFO reserve 2,295 Current assets 44,363 Current liabilities 47,806 Cost of goods sold Sales 117,973 140,433