The following account balances are taken from the records of Lewis Inc., a wholesaler of fresh fruits and vegetables:

Required
1. Compute Lewis's inventory turnover ratio for 2012 and 2011.
2. Compute the number of days' sales in inventory for 2012 and 2011. Assume 360 days in a year.
3. Comment on your answers in parts (1) and (2) relative to the company's management of inventory over the two years. What problems do you see in its inventory management?

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December 31 2011 $200,000 $150,000 $ 120,000 2011 2012 2010 2012 Cost of goods sold $7,100,000 $8,100,000