Suppose this information (in millions) is available for the Automotive and Other Operations Divisions of General Motors

Question:

Suppose this information (in millions) is available for the Automotive and Other Operations Divisions of General Motors Corporation for a recent year. General Motors uses the LIFO inventory method.

Beginning inventory.....$ 13,921

Ending inventory.......14, 939

LIFO reserve.........1, 423

Current assets.........60,135

Current liabilities.......70, 308

Cost of goods sold.....166,259

Sales revenue.......178,199

Instructions

(a) Calculate the inventory turnover and days in inventory.

(b) Calculate the current ratio based on inventory as reported using LIFO.

(d) Comment on any difference between parts (b) and (c).

Ending Inventory
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 =... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...