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.

	Year 2			Year 1
LIFO inventory	$	240		$	190
LIFO cost of goods sold		820			760
FIFO inventory		310			215
FIFO cost of goods sold		775
Current assets (using LIFO)		300			270
Current assets (using FIFO)		370			295
Current liabilities		170			150

1. Compute its current ratio, inventory turnover, and days' sales in inventory for year 2 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 year 2 using LIFO numbers.
	Numerator	/	Denominator	=	Ratio
Current ratio
Inventory turnover
Days' sales in inventory
(b) Compute its current ratio, inventory turnover, and days' sales in inventory for year 2 using FIFO numbers.
	Numerator	/	Denominator	=	Ratio
Current ratio
Inventory turnover
Days' sales in inventory