Answer Happy

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 LIFO inventory $ 100 670 LIFO cost of goods sold FIFO inventory 125 670 FIFO cost of goods sold Current assets (using LIFO) 180 Current assets (using FIFO) 205 Current liabilities 170 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. Current ratio Inventory turnover Days' sales in inventory (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Year 2 $ 150 Numerator Current ratio Inventory turnover Days' sales in inventory 730 220 685 210 280 190 Numerator Denominator (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Ratio Denominator Ratio