The following data were extracted from the income statement of Martin 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

(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?