Exercise 5-11 Comparing LIFO numbers to FIFO numbers; ratio analysis LO A1, A3

Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO for comparison purposes.

	2017			2016
LIFO inventory	$	220		$	170
LIFO cost of goods sold		800			740
FIFO inventory		290			195
FIFO cost of goods sold		755
Current assets (using LIFO)		280			250
Current liabilities		180			160

1. Compute its current ratio, inventory turnover, and days' sales in inventory for 2017 using (a) LIFO numbers and (b) FIFO numbers. (Round your answers to 1 decimal place.)

(a) Compute its current ratio, inventory turnover, and days' sales in inventory for 2017 using LIFO numbers. Numerator 7 Denominator = Ratio Current ratio Inventory turnover Days' sales in inventory (b) Compute its current ratio, inventory turnover, and days' sales in inventory for 2017 using FIFO numbers. Numerator 1 Denominator = Ratio Current ratio Inventory turnover Days' sales in inventory