Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 1 Year 2 $ 160 LIFO inventory LIFO Cost of goods sold FIFO inventory FIFO COst of goods sold Current assets (using LIFO) Current assets (using FIFO) $ 110 740 680 240 110 660 645 220 180 300 180 Current liabilities 200 170 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. IDenominator Numerator Ratio Current ratio 1.2 to 1 220.0 Inventory turnover $ 740.0 0 Days' sales in inventory 160.0 0 (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Numerator Denominator Ratio Current ratio $ 300.0 0 Inventory turnover 660.0 $ 0 Days' sales in inventory 240.0 $ 0

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 1 Year 2 $ 160 LIFO inventory LIFO Cost of goods sold FIFO inventory FIFO COst of goods sold Current assets (using LIFO) Current assets (using FIFO) $ 110 740 680 240 110 660 645 220 180 300 180 Current liabilities 200 170 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. IDenominator Numerator Ratio Current ratio 1.2 to 1 220.0 Inventory turnover $ 740.0 0 Days' sales in inventory 160.0 0 (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Numerator Denominator Ratio Current ratio $ 300.0 0 Inventory turnover 660.0 $ 0 Days' sales in inventory 240.0 $ 0

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter6: Cost Of Goods Sold And Inventory
Section: Chapter Questions
Problem 50E: Inventory Costing Methods Crandall Distributors uses a perpetual inventory system and has the...
See similar textbooks
icon
Related questions
Question
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 1 Year 2 $ 160 LIFO inventory LIFO Cost of goods sold FIFO inventory FIFO COst of goods sold Current assets (using LIFO) Current assets (using FIFO) $ 110 740 680 240 110 660 645 220 180 300 180 Current liabilities 200 170 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. IDenominator Numerator Ratio Current ratio 1.2 to 1 220.0 Inventory turnover $ 740.0 0 Days' sales in inventory 160.0 0 (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Numerator Denominator Ratio Current ratio $ 300.0 0 Inventory turnover 660.0 $ 0 Days' sales in inventory 240.0 $ 0
Transcribed Image Text: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 1 Year 2 $ 160 LIFO inventory LIFO Cost of goods sold FIFO inventory FIFO COst of goods sold Current assets (using LIFO) Current assets (using FIFO) $ 110 740 680 240 110 660 645 220 180 300 180 Current liabilities 200 170 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. IDenominator Numerator Ratio Current ratio 1.2 to 1 220.0 Inventory turnover $ 740.0 0 Days' sales in inventory 160.0 0 (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Numerator Denominator Ratio Current ratio $ 300.0 0 Inventory turnover 660.0 $ 0 Days' sales in inventory 240.0 $ 0
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Financial Accounting
Financial Accounting
Accounting
ISBN:
9781337272124
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
SEE MORE TEXTBOOKS