Exercise 5-18 (Static) Comparing LIFO numbers to FIFO numbers; ratio analysis LO 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 LIFO inventory $ 160 Year 1 $ 110 LIFO cost of goods sold FIFO inventory 740 680 240 110 FIFO cost of goods sold 660 645 Current assets (using LIFO) 220 180 Current assets (using FIFO) Current liabilities 300 200 180 170 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers. (a) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using LIFO numbers. Current ratio Inventory turnover Numerator 1 Denominator = Ratio 0 0 x 365 = 0 Days' sales in inventory (b) Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using FIFO numbers. Current ratio Inventory turnover Days' sales in inventory Numerator / Denominator = Ratio 0 0 x 365 = 0