Perez Corporation has the following financial data for the years 2010 and 2011:

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.

c. What conclusions can you draw from part a and partb?

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2010 $8,000,000 6,000,000 800,000 2011 $10,000,000 9,000,000 1,000,000 Cost of goods sold Inventory