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FIFO versus LIFO: Ratio Analysis. Presented below is financial data for two companies that are identical in every respect except that Company X uses the
FIFO versus LIFO: Ratio Analysis. Presented below is financial data for two companies that are identical in every respect except that Company X uses the FIFO method to value its inventory and Company Z uses the LIFO method to value its inventory. Using this data, calculate the following ratios: return on sales, inventory turnover, inventory-on-hand period, and current ratio. Company X Company Z Sales $100,000 $100,000 Cost of goods sold 46,000 54,900 Net income 29,700 19,300 Inventory 19,900 8,900 Current assets 65,500 54,900 Current liabilities 21,000 21,000 Round all answers to nearest one decimal place. Company X (FIFO) 0 x % Company z (LIFO) Return on sales 0 x % OX 0 x Inventory turnover Inventory-on-hand period (Do not round until your final answer.) Current ratio 0 x 0 x OX 0 x
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