Question

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).



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  • CreatedApril 07, 2014
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