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You have been given responsibility for overseeing a bank's small business loans division. The bank has included loan covenants requiring a minimum current ratio of

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You have been given responsibility for overseeing a bank's small business loans division. The bank has included loan covenants requiring a minimum current ratio of 1.30 in all small business loans. When you ask which inventory costing method the covenant assumes the previous loans manager gives you a blank look. To explain to him that a company's inventory costing method is important, you present the following balance sheet information Current assets other than inventory Inventory Other (noncurrent) assets Total assets Current liabilities Other (noncurrent) Ilabilities Stockholders equity Total abilities and stockholders' equity $(c) You ask the former loans manager to find amounts for (al ( o d and (d) assuming the company began the year with 3 units of inventory at a unit cost of $10. then purchased 6 units at a cost of $11 each and finally purchased 4 units at a cost of $15 each A year-end inventory count determined that 3 units are on hand 3. Determine the amount for using UFO, and then calculate (b) through (d. Inventory Total Assets Total Liabetes and Stockholders' Equity Stockholders Equity You have been given responsibility for overseeing a bank's small business loans division. The bank has included loan covenants requiring a minimum current ratio of 1.30 in all small business loans. When you ask which inventory costing method the covenant assumes, the previous loans manager gives you a blank look. To explain to him that a company's inventory costing method is important, you present the following balance sheet information Current assets other than inventory Inwentory Other (noncurrent) assets Total assets Current liabilities Other noncurrent) liabilities Stockholders equity Total silities and stockholders uity You ask the former loans manager to find amounts for a byla and (d) assuming the company began the year with 3 units of inventory at a unit cost of $t0then purchased 6 units at a cost of $11 each, and finally purchased 4 units at a cost of $15 each. A year-end Inventory count determined that 3 units are on hand 4. Determine the current ratios using FIFO. Weighted Average, and (LIFO(Round your answers to 2 decimal places.) Rati Weighted Average

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