Cooper Company currently uses the FIFO method to account for its inventory but is conof change in accounting sidering a switch to LIFO before the books are closed for the year. Selected data for the year are:

a. Compute the current ratio, inventory turnover ratio, and rate of return on operating assets assuming the company continues using FIFO.

b. Repeat a assuming the company adjusts its accounts to the LIFO inventory method.

Transcribed Image Text:

Merchandise inventory, January 1 Current assets $1,430,000 3,603,600 Total assets (operating) 5,720,000 Cost of goods sold (FIFO). 2,230,800 Merchandise inventory, December 31 (LIFO).. 1,544,400 Merchandise inventory, December 31 (FIFO). 1,887,600 Current liabilities. 1,144,000 Net sales 3,832,400 Operating expenses 915,200