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
Is considered to be the shortest path to failure in business.
Degger [83]

Answer:

c

Explanation:

I thinks it's c because when you deal with stress, you can't do a lot of other things

8 0
3 years ago
Read 2 more answers
A company started a new product, and in the first month started 100,000100,000 units. The ending work in process inventory was 2
sukhopar [10]

Answer:

$240,000

Explanation:

Calculation for What is the value of the inventory transferred out, using the weighted-average inventory method

First step is to calculate the Equivalent material cost=

Equivalent material cost= 20,000×100%×$6

Equivalent material cost= 120,000

Second step is to calculate Equivalent conversion cost

Equivalent conversion cost=20,000×75%×8

Equivalent conversion cost=120,000

Now let calculate the value of the inventory transferred out, using the weighted-average inventory method

Inventory value transferred out= 120,000+120,000

Inventory value transferred out=$240,000

Therefore the value of the inventory transferred out, using the weighted-average inventory method is $240,000

4 0
2 years ago
QUESTION 11 Given the following information, calculate the equity dividend rate for this investment: first-year NOI: $18,750; be
Alja [10]

Answer: D. 2.2%

Explanation: Equity Dividend Rate is calculated by dividing the Before Tax Cash Flow by the Acquisition price. If you need the answer in percentage form, you then multiply by 100.

Here, before-tax cash flow =  $11,440

Acquisition price = $520,000

So Equity Dividend Rate = \frac{11440}{520000} X 100

     Equity Dividend Rate = 2.2%

In this question, you do not need the Net Operating Income (NOI). You only need the NOI if the Before Tax Cash Flow is not given and the debt service payment is. If this is the case, you subtract the debt service payment from the NOI to get the Before Tax Cash Flow.

4 0
3 years ago
Rudyard Corporation had 110,000 shares of common stock and 11,000 shares of 7%, $100 par convertible preferred stock outstanding
Burka [1]

Answer:

$2.73

Explanation:

<em>Diluted Earnings Per Share = Earnings Attributed to Common Stockholders ÷ Weighted Average Number of Common Stockholders Outstanding</em>

where,

Earnings Attributed to Common Stockholders = $420,000

and

Weighted Average Number of Common Stockholders Outstanding = 110,000 + (11,000 x 4) = 154,000

therefore,

Diluted Earnings Per Share = $420,000 ÷ 154,000 = $2.73

Conclusion

Rudyard's diluted EPS is $2.73

7 0
2 years ago
Match the term with the correct definition.
bixtya [17]

Answer:

Matched as below

Explanation:

a. Cashier’s check: A draft drawn by a bank on itself

b. Check:  A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand

c. Certified check:  A draft that is payable on demand, drawn on or payable through a bank, and specially designated

d. Traveler’s check: A draft that had been accepted by the bank on which it is drawn, promising to pay the check when it is presented

8 0
3 years ago
Other questions:
  • Can someone tell me the correct answer? Plz...I’ll give points.
    15·1 answer
  • A discount on bonds should be reported in the balance sheet:________.
    13·1 answer
  • A(n) ________ is a software platform that uses social media to facilitate cooperative work of people within an organization. sci
    7·1 answer
  • TB Problem Qu. 1-288 Balerio Corporation's relevant ...Balerio Corporation's relevant range of activity is 8,000 units to 11,000
    9·1 answer
  • During January, Ajax Co. incurs 1,850 hours of direct labor at an hourly cost of S11 output is t 100 units of its finished produ
    6·1 answer
  • Your older brother turned 35 today, and he is planning to save $7,000 per year for retirement, with the first deposit to be made
    15·1 answer
  • What annual interest rate would you need in order to have an ordinary annuity of $7500 per year accumulated to $279600 in 15 yea
    13·1 answer
  • You own a portfolio that has $2,800 invested in Stock A and $3,250 invested in Stock B. The expected returns on these stocks are
    11·1 answer
  • Why the economy sees business cycle fluctuations rather than slow, smooth growth is a central issue of ______.
    15·1 answer
  • a country that has a lower opportunity cost associated with producing a given product compared to another country would have a(n
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!