Inventory Analysis

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

	Current Year		Previous Year
Sales	$788,400		$827,800
Beginning inventories	57,564		39,692
Cost of goods sold	394,200		459,900
Ending inventories	52,164		57,564

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	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 position of the business has

improveddeteriorated

. The inventory turnover has

increaseddecreased

, while the number of days' sales in inventory has

increaseddecreased

.