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Safeway, Inc., operated 1,700 stores as of January 1, 2011. The following data were taken from the company's annual report. All dollar amounts are in millions.
Required:
a. Compute Safeway's inventory turnover ratio for 2010 and 2009.
b. Compute Safeway's average days to sell inventory for 2010 and 2009.
c. Based on your computations in Requirements a and b, did Safeway's inventory management get better or worse from 2009 to 2010?
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The following transactions occurred in June at Fast Wheels, Inc., a custom bicycle manufacturer:
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