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Early in 2014, Chien Company switched to a just-in-time inventory system. Its sales, cost of goods sold, and inventory amounts for 2013 and 2014 are shown below.
2013
2014
Sales
$3,120,000
$3,713,000
Cost of goods sold
1,200,000
1,425,000
Beginning nventody
180,000
220,000
Ending inventory
100,000
Determine the inventory turnover and days in inventory for 2013 and 2014. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the two years.
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