5. Below is presented a table of data for cost of goods sold and ending inventory for the first six months of 2011 for EBCO, Inc. 88 | Short-Term Financial Management 150 50 225 62 200 62 125 42 90 28 DEC JAN FEB MAR APR MAY JNE Cost of goods sold 100 Ending inventory 40 Assume that each month has 30 days. a. Calculate the number of days of cost of goods sold held in inventory for March, April, May, and June assuming quarterly cost of goods sold is used to calculate average daily cost of goods sold. b. Discuss your findings in part a. What is happening with the firm's investment in inventory? c. Below is a purchasing schedule and a schedule showing the dollar amount of those pur- chases remaining as an inventory balance for successive months. Calculate a balance fraction matrix and discuss what it shows about the firm's management of its inventory balance. ENDING INVENTORY BALANCES PURCHASES FEB MAR APR MAY Feb JNE 160 31 15 Mar 237 47 23 Apr 200 39 19 May 105 23 11 Jne 76 17 End of Month Inventory NA 62 62 42 28 6. Below is presented a table of data for cost of goods sold and ending inventory for the first six months of 2012 for Wynn Manufacturing, Inc. DEC JAN FEB MAR APR MAY JUNE Cost of goods sold 1,000 1,500 2,100 2,700 3,500 4,800 Ending inventory 300 450 630 810 1,050 1,440 You may assume that each month has 30 days. a. Calculate the number of days of cost of goods sold held in inventory for March, April, May, and June assuming quarterly cost of goods sold is used to calculate average daily cost of goods sold. b. Discuss your findings in part a. What is happening with the firm's investment in inventory? C. Below is a purchasing schedule and a schedule showing the dollar amount of those pur- chases remaining as an inventory balance for successive months. Calculate a balance fraction matrix and discuss what it shows about the firm's management of its inventory balance. Feb Mar Apr May Jne End of Month Inventory PURCHASES 1,650 2,280 2,880 3,740 5,190 ENDING INVENTORY BALANCES FEB MAR APR MAY JNE 330 174 456 234 576 302 748 402 1,038 NA 630 810 1,050 1,440