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The following information is available for the automotive division of Ford Motor Company for 2009. The company uses the LIFO inventory method.
(in thousands) 2010
Beginning $ 39,121
Ending Inventory 48,649
LIFO reserve 29,652
Current Assets 291,033
Current Liabilities 89,504
Cost of Goods Sold 381,813
Sales 486,217
Instructions
(a) Calculate the inventory turnover ratio and days in inventory.
Price and Cost information play no role in negotiated transfer prices. Do you agree? Describe.
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