Inventory Ratio Calculations McMahan, LTD. provided the following data for 2008 and 2009: Inventory December 31, 2007 $178,000 December 31, 2008 185,000 December 31, 2009 193,000 Cost of goods sold 2008 $545,000 2009 587,000 Gross margin 2008 $254,000 2009 283,000 Do not round until your final answers. Round all calculations to two decimal places. (a) Calculate the inventory turnover ratio for 2008 and 2009. 2008 Answer times 2009Answer times (b) Calculate the gross margin return on inventory investment for 2008 and 2009. 2008 Answer 2009 Answer (c) Which of the following is an indication that McMahan has become more lean in 2009 than in 2008? For every dollar invested in average inventory it produced more gross margin in 2008 than in 2009. It had a higher inventory turnover in 2009 than in 2008. It had a higher gross margin in 2009 than 2008. Inventory turnover was above the established standard of 3.0 for lean companies. All of the above are signs of having a lean operation.