Inventory Analysis

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

	Current Year		Previous Year
Sales	$1,299,400		$1,353,400
Beginning inventories	82,754		61,238
Cost of goods sold	649,700		751,900
Ending inventories	74,954		82,754

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 .