Exercise 5-18 (Algo) Comparing LIFO numbers to FIFO numbers; ratio analysis LO A3 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 $320 $270 LIFO cost of goods sold 900 840 FIFO inventory 390 295 FIFO cost of goods sold 855 Current assets (using LIFO) 380 350 Current assets (using FIFO) 450 375 Current liabilities 180 160 1. Compute its current ratio, inventory turnover, and days' sales in inventory for year 2 using (a) LIFO numbers and (b) FIFO numbers. (a) Compute its current ratio, Inventory turnover, and days' sales in inventory for year 2 using LIFO numbers Numerator Denominator Ratio Current ratio $ 380 01 $ 180.0 21 to 1 Inventory turnover $ 900.0 s 2950 3.1 mes Days' sales in inventory x 365 (b) Compute its current ratio, inventory turnover, and days' sales In Inventory for year 2 using FIFO numbers Numerator / Denominator Ratio Current ratio 5 450.00 $ 1800 2510 Inventory turnover 5 8550 0 Days sales in inventory 0