Inventory Analysis

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

	Current Year		Previous Year
Sales	$730,000		$762,100
Beginning inventories	54,300		38,460
Cost of goods sold	365,000		423,400
Ending inventories	49,100		54,300

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 .