Suppose the information (in millions) is available lot the Automotive and Other

Question

Suppose the information (in millions) is available lot the Automotive and Other Operations Divisions of General Motors Corporation for a recent year. General Motors uses the LIFO inventory method. Calculate the inventory turnover and days in inventory. Calculate the current ratio based on inventory ea reported using LIFO. Calculate the current ratio after adjusting for the LIFO reserve. By accessing the Question Assistance, you will learn while you earn points based on the Pont Potential Policy set by your instructor.

Explanation / Answer

Answer (1) (a)

Answer (1) (b)

Answer (2)

Answer (3)

Inventory Turnover = Cost of Goods Sold/Average Inventory Cost of goods Sold 167505 Beginning Inventory 14852 Ending Inventory 16088 Average Inventory (Beginning Inventory+Ending Inventory)/2 15470 Inventory Turnover = 167505/15470 10.8

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