Red Company and White Company reported the following information in their financial statements, prior to their merger:
The LIFO reserve for White Company is $3,560 at the end of 2016 and $3,040 at the end of 2015.
What is the 2016 adjusted inventory turnover for White Company?
A) 2.45
B) 2.70
C) 2.72
D) 2.22

Question

Red Company and White Company reported the following information in their financial statements, prior to their merger:
 The LIFO reserve for White Company is $3,560 at the end of 2016 and $3,040 at the end of 2015.
What is the 2016 adjusted inventory turnover for White Company?
A) 2.45 
B) 2.70 
C) 2.72 
D) 2.22

Quizplus · Accepted Answer

$ 80,250 / [($33,800 + $3,560 +$31,800 + $3,040) / 2] = 2.22

Red Company and White Company Reported the Following Information in Their