Inventory Analysis

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

Current Year Prior Year

Sales $$1,489,200$ $$1,550,500$

Beginning inventories $111,99273,840$

Cost of merchandise sold $744,600861,400$

Ending inventories $101,392111,992$

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 Prior Year

$1.$ Inventory turnover fill in the blank $1$

fill in the blank $2$

$2.$ Number of days' sales in inventory fill in the blank $3$

days fill in the blank $4$

days

b$.$ The inventory turnover has

$,$ while the number of days' sales in inventory has

$.$ The sales volume has

faster than the inventory, resulting in a

inventory position.