Compute its current ratio and inventory turnover

Assignment Help Accounting Basics

Reference no: EM131533265

Question: Chess 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.
2011 2010

LIFO inventory . . . . . . . . . . . . . . . . . . . $150 $100

LIFO cost of goods sold . . . . . . . . . . . . 730 670

FIFO inventory . . . . . . . . . . . . . . . . . . . 220 125

FIFO cost of goods sold . . . . . . . . . . . . 685 -

Current assets (using LIFO) . . . . . . . . . 210 180

Current liabilities . . . . . . . . . . . . . . . . . 190 170

1. Compute its current ratio, inventory turnover, and days' sales in inventory for 2011 using

(a) LIFO numbers and

(b) FIFO numbers. (Round answers to one decimal.)

2. Comment on and interpret the results of part 1.

Reference no: EM131533265

Questions Cloud

Why source is or is not a credible source of information : Evaluate the source and explain why it is or is not a credible source of information. Provide a reference in APA format.

What is the size of the equal payments : What is the size of the equal payments if money is worth 8% compounded quarterly?

Which is the constant growth rate for the firm : which is the constant growth rate for the firm (g). The new dividend after 12 months will represent D1.

Define the yield to maturity : Interest is paid annually and the bonds have a $1,000 par value and a coupon rate of 5 percent. If the price of bond is $841.51, what is the yield to maturity?

Compute its current ratio and inventory turnover : Chess Company uses LIFO for inventory costing and reports the following financial data. It also recomputed inventory and cost of goods sold using FIFO.

How are the works similar and how are they different : How are the works similar and how are they different? Is the message or function the same? Is the intended audience different? Do they look alike or not?

Local chamber of commerce to promote her business : Jane is purchasing a membership in the local Chamber of Commerce to promote her business.

Random sample of men to be interviewed : What is the probability that any of the 40 men is in your random sample of 4 men to be interviewed?

Variable rate demand loan showed an initial balance : A variable rate demand loan showed an initial balance of $12000, payments of $5000 after 18 months, $4000 after 30 months, and a final payment after 5 years.

User Account

All Pages