This information (in millions) is available for the Automotive and Other Operations Divisions of General Motors Corporation

Question:

This information (in millions) is available for the Automotive and Other Operations Divisions of General Motors Corporation for a recent year. General Motors uses the LIFO inventory method.

Beginning inventory ... $ 13,921

Ending inventory ..... 14,939

LIFO reserve ....... 1,423

Current assets ........ 60,135

Current liabilities ...... 70,308

Cost of goods sold .... 166,259

Sales revenue ....... 178,199

Instructions

(a) Calculate the inventory turnover ratio and days in inventory.

(b) Calculate the current ratio based on inventory as reported using LIFO.

(d) Comment on any difference between parts (b) and (c).

Inventory Turnover Ratio
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