Calculate the average days in inventory for each company. Average Days in Inventory Accounts in Ratio Lewis Clark || Amounts 0 days 11 0 days
Calculate the average days in inventory for each company. Average Days in Inventory Accounts in Ratio Lewis Clark || Amounts 0 days 11 0 days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Lewis Incorporated and Clark Enterprises report the following amounts for the year.
| Lewis | Clark | |
|---|---|---|
| Inventory (beginning) | $29,000 | $55,000 |
| Inventory (ending) | 23,000 | 65,000 |
| Purchases | 339,000 | 177,000 |
| Purchase returns | 20,000 | 65,000 |
Required:
1. Calculate cost of goods sold for each company.
2. Calculate the inventory turnover ratio for each company.
3. Calculate the average days in inventory for each company.
4. Which company appears to be managing its inventory more efficiently?
Transcribed Image Text:Calculate the average days in inventory for each company.
Average Days in Inventory
Accounts in Ratio
Lewis
Clark
||
Amounts
0 days
11
0 days
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