Presented below is financial data for two companies that are identical yma in every respect except that Company X uses the FIFO method to value its inventory and Company Z uses the LIFO method to value its inventory. Using this data, calculate the following ratios: return on sales, inventory turnover, inventory-on-hand period, and current ratio. Which of the two companies is the better investment opportunity? Why?

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Sales.. Cost of goods sold.. Net income.. Inventory... Current assets Current liabilities. Company X Company Z $100,000 $100,000 47,500 56,400 29,000 18,600 19,000 8,600 64,000 53,600 21,000 21,000