Reference no: EM132911227

Cruz 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.

                                        Year 2                      Year 1

LIFO inventory             $160                     $110

LIFO cost of goods sold  740                       680

FIFO inventory             240                        110

FIFO cost of goods sold  660                      645

Current assets (using LIFO) 220                   180

Current assets (using FIFO) 300                   180

Current liabilities                200                    170

Problem 1. Compute its current ratio, inventory turnover, and days' sales in inventory for Year 2 using (a) LIFO numbers and (b) FIFO numbers.