Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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 $ 340 $ 290
LIFO cost of goods sold 920860
FIFO inventory 410315
FIFO cost of goods sold 875860
Current assets (using LIFO)400370
Current assets (using FIFO)470
395
Current liabilities 170150
1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions