Suppose this information (in millions) is available for the Automotive and Other Operations Divisions of General Motors Corporation for a recent year. General Motors uses the LIFO inventory method.

Beginning inventory $ 13,921 Ending inventory 14,939 LIFO reserve 1,423 Current assets 60,135 Current liabilities 70,308 Cost of goods sold 166,259 Sales revenue 178,199 Instructions

(a) Calculate the inventory turnover and days in inventory.

(b) Calculate the current ratio based on inventory as reported using LIFO.

(c) Calculate the current ratio after adjusting for the LIFO reserve.

(d) Comment on any difference between parts

(b) and (c).

AppendixLO1