Chess Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory
Question:
1. Compute its current ratio, inventory turnover, and days sales in inventory for 2011 using
(a) LIFO numbers and
(b) FIFO numbers.
2. Comment on and interpret the results of part1.
Transcribed Image Text:
2011 2010 LIFO inventory LIFO cost of goods sold $150 $100 730 670 FIFO cost of goods sold . .685 Current assets (using LIFO)210 180 Current liabilities 190 170
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1 a LIFO ratio computations LIFO current ratio 2011 210190 11 LIFO inventory turnover 2011 730 15010...View the full answer
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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