Early in 2017, Fedor Company switched to a just-in-time inventory system. Its sales and inventory amounts for 2016 and 2017 are shown below.

Determine the inventory turnover and days in inventory for 2016 and 2017. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the 2 years.

Transcribed Image Text:

Sales revenue Cost of goods sold Beginning inventory Ending inventory $3,120,000 2016 2017 $3,713,000 1,200,000 1,425,000 170,000 210,000 210,000 90,000