Suppose this information is available for the Automotive Sector of NoGo Motor Company for 2014. NoGo uses
Question:
Suppose this information is available for the Automotive Sector of NoGo Motor Company for 2014. NoGo uses the LIFO inventory method.
(in millions)
Beginning inventory...............$ 10,017
Ending inventory.................10,121
LIFO reserve...................1,100
Current assets...................54, 243
Current liabilities.................50,218
Cost of goods sold..................130,460
Sales......................154, 379
Instructions
(a) Calculate the inventory turnover and days in inventory.
(b) Calculate the current ratio based on inventory as reported using LIFO.
(c) Calculate the current ratio after adjusting for the LIFO reserve.
(d) Comment on any difference between parts (b) and (c).
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
Step by Step Answer:
a 2014 Inventor turnover Days in inventory b Current ratio c 2014 Current asset...View the full answer
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
