Inventory Analysis The following data were extracted from the income statement of Shriver Inc.: Current Year Prior Year Sales $17,900,000 $18,100,000 760,000 700,000 Beginning inventories Cost of merchandise sold 8,964,000 9,782,000 Ending inventories 900,000 760,000 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 final answers to one decimal place. Assume 365 days a year. Current Year Prior Year 1. Inventory turnover 10.80 13.40 2. Number of days' sales in inventory 33.80 days 27 X days , while the number of days' sales in inventory has increased the sales volume has declined faster than the inventory, b. The inventory position of the business has deteriorated. The inventory turnover has decreased resulting in a deteriorating inventory position