Exercise 5-11 Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recom- ring LIFO numbers puted inventory and cost of goods sold using Compar to FIFO numbers; ratio analysis A1 A3 2017 2016 $160 $110 740 680 240 110 660 645 220 180 200 170 LIFO inventory LIFO cost of goods sold... FIFO inventory FIFO cost of goods sold Current assets (using LIFO) Current liabilities. or 2017 using (a) LIFO 1. Comp its current Check (1) FIFO Current ratio, 1.5, Inventory turnover 3 8 times nsw ment or of Vibrant Company had $850,000 of sales in each of three consecutive years 2016-2018, and it purchased Exercise 5-12 Analysis of inventory errors merchandise costing $500,000 in each of those years. It also maintained a $250,000 physical inventory A2 from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $230,000 rather than the correct $250,000 1. Determine the correct amount of the company's gross profit in each of the years 2016-2018. 2. Prepare comparative income statements as in Exhibit 5.11 to show the effect of this error on the com- Check 2016 reported gross profit, $330.000 pany's cost of goods sold and gross profit for each of the years 2016-2018