1.

The following data were extracted from the income statement of Brecca Systems Inc.:

	Current Year		Preceding Year
Sales	$949,000		$985,500
Beginning inventories	73,440		45,650
Cost of goods sold	474,500		547,500
Ending inventories	66,440		73,440

a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round interim calculations to the nearest dollar and the final answers to one decimal place. Assume 365 days a year.

1. Inventory turnover Current Year: _________ Preceding Year:_______

2. Number of days' sales in inventory Days:______ Days:______

2.

The following data are taken from the financial statements of McKee Technology Inc. Terms of all sales are 2/10, n/55.

	2014		2013		2012
Accounts receivable, end of year	$163,800		$172,000		$178,400
Net sales on account	923,450		805,920

a. For 2013 and 2014, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year.

	2014		2013
1. Accounts receivable turnover
2. Number of days' sales in receivables		days		days