Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using

image text in transcribed

4. Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes. Year 2 Year 1 5 LIFO inventory $ 160 $ 110 LIFO cost of goods sold FIFO inventory 740 680 240 110 FIFO cost of goods sold 660 645 Current assets (using LIFO) 220 180 Book Current assets (using FIFO) Current liabilities 300 180 200 170 Hint 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. Print (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Current ratio erences Inventory turnover Numerator /Denominator Ratio 0 0 / 365 = 0 Days' sales in inventory (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Numerator / Denominator Current ratio Inventory turnover Days' sales in inventory Ratio 0 0 x 365 = 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Statistics

Authors: Prem S. Mann

8th Edition

9781118473986, 470904100, 1118473981, 978-0470904107

More Books

Students also viewed these Accounting questions

Question

List the directors duties in respect of going concern basis.

Answered: 1 week ago

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago