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The following data were extracted from the income statement of Boston Solutions, Inc. 2010 2009 Sales $1,139,600 $1,192,320 Beginning inventories 80,000 64,000 Cost of goods

The following data were extracted from the income statement of Boston Solutions, Inc.

2010

2009

Sales

$1,139,600

$1,192,320

Beginning inventories

80,000

64,000

Cost of goods sold

500,800

606,000

Ending inventories

72,000

80,000

Required:

(1)

Determine for each year:

a.

The inventory turnover; and

b.

The number of days sales in inventory. Round to nearest dollar and one decimal place.

(2)

What conclusions can be drawn from these data concerning the inventories?

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