Suppose this information is available for the Automotive Sector of NoGo Motor Company for 2014. NoGo uses the LIFO inventory method.

(in millions)

Beginning inventory...............$ 10,017

Ending inventory.................10,121

LIFO reserve...................1,100

Current assets...................54, 243

Current liabilities.................50,218

Cost of goods sold..................130,460

Sales......................154, 379

Instructions

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

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

(c) Calculate the current ratio after adjusting for the LIFO reserve.

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