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Accounting

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You have been given responsibility for overseeing a bank's small business loans division. The bank has included loan covenants requiring a minimum current ratio of 1.30 in all small business loans. When you ask which inventory costing method the covenant assumes, the previous loans manager gives you a blank look. To explain to him that a company's inventory costing method is important, you present the following balance sheet information. Current assets other than inventory Inventory Other (noncurrent) assets Total assets Current iabilities Other (noncurrent) liabi1ities Stockholders' equity $ 32 s (b) s 50 Total liabilities and stockholders equity s (c) You ask the former loans manager to find amounts for (o),. (b), (d, and (o) assuming the company began the year with 3 units of inventory at a unit cost of $12 then purchased 6 units at a cost of $13 each, and finally purchased 4 units at a cost of $17 each. A year end inventory count determined that 2 units are on hand Required: 1. Determine the amount for (e) using FIFO and then caiculate (o) through (o)

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