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The following data are from the income statements of Ellen Noodles Company:
Sales
$6,420,000
$6,240,000
Beginning inventory
960,000
860,000
Purchases
4,540,000
4,661,000
Ending inventory
1,020,000
(a) Compute for each year (1) the inventory turnover and (2) the average days to sell the inventory.
(b) What conclusions concerning the management of the inventory can be drawn from these data?
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