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Chess Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for
Chess 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. 2011 2010 LIFO inventory $ 150 $ 100 LIFO cost of goods sold 730 670 FIFO inventory 220 125 FIFO cost of goods sold 685 Current assets (using LIFO) 210 180 Current liabilities 190 170 1. Compute its current ratio, inventory turnover, and days' sales in inventory for 2011 using (a) LIFO numbers and (b) FIFO numbers. (Use 365 days a year. Do not round intermediate calculations and round your final answers to 1 decimal place.) Current ratio Inventory turnover Days' sales in inventory LIFO ? ? times ? days FIFO ? ? times ?days
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