Kamin Corporation has the following financial data for the years 2009 and 2010:

a. Compute inventory turnover based on ratio number 6, Sales/Inventory, for each year.
b. Compute inventory turnover based on an alternative calculation that is used by many financial analysts, Cost of goods sold/Inventory, for each year.

Transcribed Image Text:

2009 2010 Sales Cost of goods sold. Inventory $4,000,000 $5,000,000 4,500,000 500,000 3,000,000 400,000