18. Perez Corporation has the following financial data for the years 2007 and 2008:

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 part b?

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2007 2008 Sales.... Cost of goods sold Inventory.. $8,000,000 $10,000,000 6,000,000 9,000,000 800,000 1,000,000