This information (in millions) is available for the Automotive and Other Operations Divisions of General Motors Corporation

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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.

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Instructions

(a) Calculate the inventory turnover ratio 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).

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Accounting Tools For Business Decision Making

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Question Posted: Jun 10, 2024 01:04 AM

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This information (in millions) is available for the Automotive and Other Operations Divisions of General Motors Corporation

Question:

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

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Accounting Tools For Business Decision Making

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