Inventory analysis Obj. 3 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 1,120,000 940,000

a. Determine for each year (1) the inventory turnover and (2) 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?

AppendixLO1