1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kay [80]
3 years ago
15

Cruz Company uses LIFO for inventory costing and reports the following financial data. It also recomputed the inventory and cost

of goods sold using FIFO for comparison purposes.
2015 2014
LIFO inventory $330 $280
LIFO cost of goods sold 910 850
FIFO inventory 400 305
FIFO cost of goods sold 965
Current assets (Using LIFO) 390 360
Current Liabilities 175 155
Required:

1) Compute its current ratio, inventory turnover, and day's sales in inventory for 2015 using

(a) LIFO numbers and

(b) FIFO numbers. (Round your answers to 1 decimal place.)
Business
1 answer:
Nonamiya [84]3 years ago
8 0

Answer:

Explanation:

Compute its current ratio, inventory turnover, and day's sales in inventory for 2015 using:

A. LIFO Numbers 2015

Current Ratio: current asset/current liability = 390/175 = 2.23

Inventory turnover = Cost of goods sold/ average inventory= 965/(400/12) = 965/33.33 = 29.0

Day's sales in inventory = Ending Inventory/Cost of goods sold* 365 = 330/910*365 = 132.36

B. FIFO numbers in 2015

Current Ratio: current asset/current liability = 390/175 = 2.23

Inventory turnover = Cost of goods sold/ average inventory= 965/(400/12) = 965/33.33= 29.0

Day's sales in inventory = Ending Inventory/Cost of goods sold* 365 = 400/965*365 = 151.3

You might be interested in
Give an example of a public franchise and an example of a public enterprise. an example of a public franchise is
Masja [62]
<span>I took this before, it's a firm that is the​ sole, government-designated provider of electricity​, and an example of a public enterprise is the government directly providing sewage service.

(:
</span>
6 0
3 years ago
An example of communicating category membership by relying on the product descriptor is ford's positioning of its freestyle auto
hoa [83]
That statement Is true

In marketing, product descriptor refers to a structured format that displayed some information about a specific product.
In this case, ford tried to create a unique product descriptor such as "sports wagon" to tell its consumers that their product has the characteristic of a sport and a wagon
7 0
3 years ago
An economy produces apples (in kilos) and computers (in units). The quantities of apples in years 2008, 2009 and 2010 are 500, 5
Fudgin [204]

Answer:

Nominal GDP for year 2010 = $7,650

Explanation:

Nominal GDP measures the market value of all goods and services produced in an economy at current prices, normally in a year. Current prices are the prices of the year I want to know the GDP. In this case, our current prices are 2010 prices. To know the nominal GDP, we must multiply the quantities produced by their current prices:

Nominal GDP= 550*$3+6*$1000=$7,650

3 0
3 years ago
Pristine products, a wholesaler, uses a periodic inventory system. at year-end, pristine conducts a physical inventory count to
k0ka [10]
<span>how much of their company's merchandise is being sold, how much of it has been damaged, how much has gone out of style or is out of season. Once the inventory is taken, Pristine products should be able to project how much product needs to be manufactured and sold going forward so that they do not work at a loss of profits.</span>
6 0
3 years ago
Richard has $652 in his account and is planning a road trip. He looks at how expensive hotels and sightseeing costs are in certa
Cloud [144]

Answer:

The answer is: Detroit  $196.87

Explanation:

We first must add the cost of visiting the five cities:

Detroit            $196.87

Pittsburgh      $180.32

St. Paul          $102.87

Cincinnati      $155.81

<u>Richmond      $211.86      </u>

Total cost     $847.73

Then we find what is the difference between the total cost and the road trip budget: $847.73 - $652 = $195.73

The cheapest city that Richard can drop is Detroit, by doing so his total expenses will be $650.86, which is below his budget.

4 0
3 years ago
Read 2 more answers
Other questions:
  • What are royalties ?​
    7·1 answer
  • The primary advantages of specialization are that employees acquire greater _______ from repetition, they avoid _______ time in
    10·1 answer
  • The balance of payments is a record of:___________
    5·1 answer
  • The following data relate to direct labor costs for the current period: Standard costs 7,000 hours at $11.40 Actual costs 6,400
    9·1 answer
  • What is the first step involved in developing and implementing a social media marketing campaign?
    15·1 answer
  • A man bought a horse for $60 and sold it for $70. Then he bought it back for $80 and sold it for $90. How much did he make or lo
    10·1 answer
  • Among a group of 2,500 people, 35 percent invest in municipal bonds, 18 percent invest in oil stocks, and 7 percent invest in bo
    11·1 answer
  • A hospital data entry professional is part of what career area?
    12·2 answers
  • Using your economic knowledge and the information you learned about Oprah Winfrey compose a well-written three-paragraph biograp
    9·1 answer
  • Why the economy sees business cycle fluctuations rather than slow, smooth growth is a central issue of ______.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!