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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 for
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
LIFO inventory $ 250 $ 200
LIFO cost of goods sold 830 770
FIFO inventory 320 225
FIFO cost of goods sold 785 770
Current assets (using LIFO) 310 280
Current assets (using FIFO) 380
305
Current liabilities 165 145
1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers.
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