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Problem - Inventory analysis - The following data were extracted from the income statement of Keever Inc.:
Current Year
Previous Year
Sales
$18,500,000
$20,000,000
Beginning inventories
940,000
860,000
Cost of goods sold
9,270,000
10,800,000
Ending inventories
1,120,000
Required -
a1. Determine for each year the inventory turnover and Round to the nearest dollar and one decimal place.
a2. Determine for each year the number of days' sales in inventory. Round to the nearest dollar and one decimal place.
b. What conclusions can be drawn from these data concerning the inventories?
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