Question

Use the following information for Blossom Company, Splish Brothers Inc., Riverbed Industries, and Evans Services to answer the question “Using the LIFO adjustment, which company shows the greatest improvement in its current ratio from 2021 to 2022?”

(amounts in $ millions)   
Blossom
Splish Brothers
Riverbed
Evans
Inventory Method for 2022 & 2021
LIFO
FIFO
LIFO
FIFO
2021 Ending inventory assuming LIFO
$323 0 $213 0
2021 Ending inventory assuming FIFO
$438 $524 $304 $669
2022 Ending inventory assuming LIFO
$436 0 $167 0
2022 Ending inventory assuming FIFO
$584 $623 $217 $545
2021 Current assets (reported on balance sheet)
$1677 $2033 $1321 $2736
2021 Current liabilities
$992 $1218 $553 $1211
2022 Current assets (reported on balance sheet)
$2224 $2595 $1113 $2398
2022 Crrent liabilities
$1303 $1415 $459 $1010
2022 Cost of goods sold
$4673 $5036 $2989 $7005

Evans
Riverbed
Blossom
Splish Brothers

Answer 1