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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 $ 200 $ 150 LIFO cost of goods sold 780 720 FIFO inventory 270 175 FIFO cost of
goods sold 735 720 Current assets (using LIFO) 260 230 Current assets (using FIFO) 330 255
Current liabilities 165 145 1. Compute its current ratio, inventory turnover, and days' sales in
inventory for Year 2 using (a) LIFO

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Cruz Company uses LIFO for inventory costing and reports the.pdf

  • 1. 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 $ 200 $ 150 LIFO cost of goods sold 780 720 FIFO inventory 270 175 FIFO cost of goods sold 735 720 Current assets (using LIFO) 260 230 Current assets (using FIFO) 330 255 Current liabilities 165 145 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO