Compute the inventory turnover and days in inventory

Assignment Help Accounting Basics

Reference no: EM131988280

Problem

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

Beginning inventory	$15,279
Ending inventory	14,409
LIFO reserve	1,505
Current assets	64,524
Current liabilities	68,379
Cost of goods sold	154,105
Sales revenue	163,412

a) Calculate the inventory turnover and days in inventory.

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

c) Calculate the current ratio after adjusting for the LIFO reserve.

Reference no: EM131988280

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