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:

Failure to thrive

A medical condition typically observed in infants and children, characterized by significantly slower than expected growth and development.

Excessive sleep

Sleeping for durations significantly longer than the typical 7-8 hours per night, which might be indicative of underlying health issues or sleep disorders.

Multiple sclerosis

A chronic autoimmune disorder affecting the central nervous system, marked by damage to the myelin sheath that covers nerve cells, leading to neurological symptoms.

Alzheimer's disease

A progressive neurodegenerative disorder that causes memory loss, cognitive decline, and ultimately, loss of ability to carry out the simplest tasks.