Inventory Analysis

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

	Current Year		Previous Year
Sales	$1,095,000		$1,143,200
Beginning inventories	62,850		60,472
Cost of goods sold	547,500		635,100
Ending inventories	56,850		62,850

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.

	Current Year		Previous Year
1. Inventory turnover
2. Number of days' sales in inventory		days		days

b. The inventory position of the business has deteriorated . The inventory turnover has decreased , while the number of days' sales in inventory has increased .

Please explain how you got the answer and work on the question, please.

Inventory Analysis The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $1,095,000 $1,143,200 Beginning inventories 62,850 60,472 Cost of goods sold 547,500 635,100 Ending inventories 56,850 62,850 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. Current Year Previous Year 1. Inventory turnover 2. Number of days' sales in inventory days days b. The inventory position of the business has The inventory turnover has while the number of days' sales in inventory has