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Kay [80]
1 year 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]1 year 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

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Pristine products, a wholesaler, uses a periodic inventory system. at year-end, pristine conducts a physical inventory count to
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A regional transportation authority is interested in estimating the mean number of minutes working adults in the region spend co
scoray [572]

Answer:  To remove bias when estimating the proportion of working adults living in urban, suburban, and rural areas.

Explanation: In simple words, stratification refers to the process in which different sections of the society are grouped on the basis of one or more general factors.

In the given case, the company wants to estimate the minutes of working adults in the region and the region is grouped into urban, suburban and rural.

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2 years ago
NoFly Corporation sells three different models of a mosquito "zapper." Model A12 sells for $60 and has variable costs of $43. Mo
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Answer:

Instructions are below.

Explanation:

Giving the following information:

Model A12:

selling price=  $60

variable cost= $43

Model B22:

selling price= $111

variable costs= $79

Model C124:

selling price= $402

variable costs= $309.

Sales mix:

A12= 60%

B22= 27%

C124= 13%.

Fixed costs= $225,789

First, we need to calculate the break-even point in units for the company as a whole:

Break-even point (units)= Total fixed costs / Weighted average contribution margin ratio

Weighted average contribution margin ratio= (weighted average selling price - weighted average unitary variable cost)

Weighted average contribution margin ratio= (0.6*60 + 0.27*111 + 0.13*402) - (0.6*43 + 0.27*79 + 0.13*309)

Weighted average contribution margin ratio= 30.93

Break-even point (units)= 225,789/30.93

Break-even point (units)= 7,300 units

Now, for each product:

Sales mix:

A12= 0.6*7,300= 4,380

B22= 0.27*7,300= 1,971

C124= 0.13*7,300= 949

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2 years ago
Operational inefficiencies occur because accounts unique to many concurrent transactions need to be updated in real time.
IrinaK [193]

Answer:

This statement is False

Explanation:

Operational inefficiencies do not occur because accounts unique to many concurrent transactions need to be updated in real time. There are many reasons for operational inefficiencies occur as a result of factors such as improper planning, poor scheduling, poor supervision and quality control, and other factors.

5 0
1 year ago
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