2)

Early in 2018, Black Company switched to a just-in-time inventory system. Its sales, cost of goods sold, and inventory amounts for 2017 and 2018 are shown below.

2018

2017

Sales revenue

$ 3,000,000

$ 2,800,000

Cost of goods sold

1,500,000

1,370,000

Beginning inventory

420,000

315,000

Ending inventory

318,000

75,000

Determine the inventory turnover and days in inventory for 2017 and 2018.

Write a comment concerning the changes in the amount of inventory, the inventory turnover and days in inventory and the amount of sales across the two years.

2017

2018

Inventory turnover

Days in inventory