17.9

Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales 51,065,800 $1,116,900 Beginning inventories 56,720 68,220 Cost of merchandise sold 532,900 620,500 Ending inventories 51,320 56,720 a. Determine for each year (1) the inventory tumover 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. Current Year Prior Year 1. Inventory tumover 1.6 x 10.5 X 2. Number of days' sales in inventory 34.4 X days 34.8 X days b. The inventory position of the business has deteriorated The inventory turnover has decreased while the number of days' sales in inventory has decreased Fach