Lewis Incorporated and Clark Enterprises report the following amounts for the year.Inventory (beginning)Inventory (ending)PurchasesPurchase returnsLewis$27,00021,000307,20018,000Required:1. Calculate cost of goods sold for each company.2. Calculate the inventory turnover ratio for each company.Clark$53,00063,000189,00063,0003. Calculate the average days in inventory for each company.4. Which company appears to be managing its inventory more efficiently?Required 1 Required 2Complete this question by entering your answers in the tabs below.Required 3Required 4Which company appears to be managing its inventory more efficiently?Which company appears to be managing its inventory more efficiently?

1. Lewis = 295,200Clark = 116,0002.Lewis = 12.3Clark = 2.003. Lewis = 29.67 daysClark = 182.5 days4.…

Answered: Lewis Incorporated and Clark…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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