Use the Information That Follows Concerning Edward Company to Answer

question 92

Essay

Use the information that follows concerning Edward Company to answer problems
Edward Company began business on January 1 and uses the periodic system. During January, Edward made the following purchases:
$\begin{array}{llr}\text { January 3: } & 100 \text { units } @ \$ 30 & \$ 3,000 \\\text { January 21: } & 400 \text { units } @ \$ 20 & \$ 8,000 \\\text { January sales: } & 320 \text { units } \$ 40 & \$ 12,800\end{array}$
Other information:
$\begin{array}{lrr} \text { January expenses excluding cost of goods sold } &\$800\\ \text { January 31 current assets excluding inventory } &11,000\\ \text {January 31 current liabilities } &6,000\\ \text { Number of shares of common stock } &300\\\end{array}$

-Calculate Edward's January current ratio under the FIFO and LIFO cost flow assumptions.

---

Definitions:

Rent

Rent is the payment made by a tenant to a landlord for the use of a property, typically on a monthly basis, for residential or commercial purposes.

Prices

The amount of money required to purchase goods or services, reflecting supply and demand dynamics.

MRP Schedule

A document or chart illustrating the Marginal Revenue Product of labor, showing how much each additional unit of labor contributes to revenues.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay a certain price.