1- Presented below is financial data for two companies that are identical in every respect except that Company X uses the FIFO method to value its inventory and Company Z uses the LIFO method to value its inventory. Using this data, calculate the following ratios: return on sales, inventory turnover, inventory-on-hand period, and current ratio.

	Company X	Company Z
Sales	$100,000	$100,000
Cost of goods sold	46,500	55,400
Net income	29,500	19,100
Inventory	19,000	8,600
Current assets	65,000	54,600
Current liabilities	21,000	21,000

Round all answers to nearest one decimal place.

	Company X (FIFO)		Company Z (LIFO)
Return on sales	Answer	%	Answer	%
Inventory turnover	Answer		Answer
Inventory-on-hand period (Do not round until your final answer.)	Answer		Answer
Current ratio	Answer		Answer

2- The following information is taken from the annual report of Coca-Cola Enterprises, Inc.:

(amounts in millions)	Year 2	Year 1
Net revenue	$18,706	$18,158
Cost of goods sold	11,185	10,771
Inventories	786	763
Accounts payable	2,639	2,708

Using this information, calculate the accounts payable turnover ratio and the days payable period for Year 1 and Year 2.

Do not round until your final answer. Round all answers to nearest one decimal place.

	Year 2	Year 1
Accounts payable turnover	Answer	Answer
Days' payable period	Answer	Answer

Is Coca-Cola Enterprises taking longer to pay its accounts payable to its suppliers

AnswerNo, it is paying its current trade obligations more quickly.Yes, it is paying its current trade obligations more slowly.

Do the ratios indicate that the companys credit risk is increasing?

AnswerThe companys credit risk is decreasing.The companys credit risk is increasing.