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You have been given responsibility for overseeing a bank’s smallbusiness loans division. The bank has included loan covenantsrequiring a minimum current ratio of 1.4 in all small businessloans. When you ask which inventory costing method the covenantassumes, the previous loans manager gives you a blank look. Toexplain to him that a company’s inventory costing method isimportant, you present the following balance sheet information.

Current assets other than inventory	$	22
Inventory		(a	)
Other (noncurrent) assets		131
Total assets	$	(b	)
Current liabilities	$	60
Other (noncurrent) liabilities		68
Stockholders’ equity		(d	)
Total liabilities and stockholders’ equity	$	(c	)

You ask the former loans manager to find amounts for (a), (b),(c), and (d) assuming the company began the year with 5 units ofinventory at a unit cost of $12, then purchased 8 units at a costof $13 each, and finally purchased 6 units at a cost of $17 each. Ayear-end inventory count determined that 4 units are on hand.

1. Determine the amount for (a) using Weighted Average, andthen calculate (b) through (d).

Inventory Total Assets Total Liabilities and Stockholders' Equity Stockholders' Equity

2.	Determine the amount for (a) using LIFO, and then calculate (b)through (d).

Inventory Total Assets Total Liabilities and Stockholders' Equity Stockholders' Equity

3. Determine the current ratios using (i) FIFO, (ii) WeightedAverage, and (iii) LIFO. (Round your answers to 2 decimalplaces.)

FIFO Weighted Average LIFO