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Cruz Company uses LIFO for Inventory costing and reports the following financial data. It also recomputed Inventory and cost of goods sold using FIFO
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. LIFO inventory LIFO cost of goods sold FIFO inventory FIFO cost of goods sold Current assets (using LIFO) Current assets (using FIFO) Current liabilities 1. Compute its current ratio, Inventory turnover, and days' sales in Inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. Current ratio Inventory turnover Days' sales in inventory Year 2 $ 260 840 330 795 320 390 185 (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Numerator / Denominator Year 1 $ 210 780 235 780 290 315 165 Current ratio Inventory turnover Days' sales in inventory Numerator (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Denominator Ratio Ratio
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