Lewis Incorporated and Clark Enterprises report the following amounts for the year. Inventory (beginning) Inventory (ending) Purchases Purchase returns Required: Lewis $29,000 Clark $55,000 23,000 65,000 339,000 177,000 20,000 65,000 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?
Lewis Incorporated and Clark Enterprises report the following amounts for the year. Inventory (beginning) Inventory (ending) Purchases Purchase returns Required: Lewis $29,000 Clark $55,000 23,000 65,000 339,000 177,000 20,000 65,000 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?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 11E
Related questions
Question
![Lewis Incorporated and Clark Enterprises report the following amounts for the year.
Inventory (beginning)
Inventory (ending)
Purchases
Purchase returns
Required:
Lewis
$29,000
Clark
$55,000
23,000
65,000
339,000
177,000
20,000
65,000
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad8f6cd5-bba5-481f-9bfc-71ebe8e79735%2F226cd173-4482-426b-8fe8-dc238f87758c%2Fgx6z48_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Lewis Incorporated and Clark Enterprises report the following amounts for the year.
Inventory (beginning)
Inventory (ending)
Purchases
Purchase returns
Required:
Lewis
$29,000
Clark
$55,000
23,000
65,000
339,000
177,000
20,000
65,000
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?
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