Lewis Incorporated and Clark Enterprises report the following amounts for the year. Inventory (beginning) Inventory (ending) Purchases Purchase returns Lewis $27,000 21,000 307,200 18,000 Required: 1. Calculate cost of goods sold for each company. 2. Calculate the inventory turnover ratio for each company. Clark $53,000 63,000 189,000 63,000 3. Calculate the average days in inventory for each company. 4. Which company appears to be managing its inventory more efficiently? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 3 Required 4 Which company appears to be managing its inventory more efficiently? 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 Lewis $27,000 21,000 307,200 18,000 Required: 1. Calculate cost of goods sold for each company. 2. Calculate the inventory turnover ratio for each company. Clark $53,000 63,000 189,000 63,000 3. Calculate the average days in inventory for each company. 4. Which company appears to be managing its inventory more efficiently? Required 1 Required 2 Complete this question by entering your answers in the tabs below. Required 3 Required 4 Which company appears to be managing its inventory more efficiently? Which company appears to be managing its inventory more efficiently?
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.
Inventory (beginning)
Inventory (ending)
Purchases
Purchase returns
Lewis
$27,000
21,000
307,200
18,000
Required:
1. Calculate cost of goods sold for each company.
2. Calculate the inventory turnover ratio for each company.
Clark
$53,000
63,000
189,000
63,000
3. Calculate the average days in inventory for each company.
4. Which company appears to be managing its inventory more efficiently?
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Required 3
Required 4
Which company appears to be managing its inventory more efficiently?
Which company appears to be managing its inventory more efficiently?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3c3484f-05b4-417e-96dc-e0a3873c7d92%2F3756f150-6ee7-47b2-826d-0079c70c5922%2Fcwqw9l8_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
Lewis
$27,000
21,000
307,200
18,000
Required:
1. Calculate cost of goods sold for each company.
2. Calculate the inventory turnover ratio for each company.
Clark
$53,000
63,000
189,000
63,000
3. Calculate the average days in inventory for each company.
4. Which company appears to be managing its inventory more efficiently?
Required 1 Required 2
Complete this question by entering your answers in the tabs below.
Required 3
Required 4
Which company appears to be managing its inventory more efficiently?
Which company appears to be managing its inventory more efficiently?
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