Inventory Analysis

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

	Current Year		Preceding Year
Sales	$1,138,800		$1,182,600
Beginning inventories	64,876		76,820
Cost of goods sold	569,400		657,000
Ending inventories	58,676		64,876

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		Preceding Year
1. Inventory turnover
2. Number of days' sales in inventory		days		days

b. The inventory position of the business has SelectimproveddeterioratedItem 5 . The inventory turnover has SelectincreaseddecreasedItem 6 , while the number of days' sales in inventory has SelectincreaseddecreasedItem 7 .