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.

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Definitions:

Nazis

The members of the National Socialist German Workers' Party, which was led by Adolf Hitler and ruled Germany from 1933 to 1945, known for initiating World War II and committing numerous atrocities.

Stereotype

A fixed, oversimplified, and often inaccurate idea of the characteristics that typify a person, group, or thing, which can influence attitudes and behaviors towards them.

Cognitive Generalization

The extension of learned behavior or response to situations that are similar, but not identical, to the original learning environment.

Extremity Bias

The tendency for people to remember and give disproportionate weight to the most extreme examples or experiences.