The following data were extracted from the income statement of Keever Inc.: Current Year Previous Year Sales $861,400 $893,500 Beginning inventories 41,294 47,308 430,700 496,400 Cost of goods sold Ending inventories 37,294 41,294 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 2.74 X 2.80 x 2. Number of days' sales in inventory 33.3 days 32.6 days b. The inventory position of the business has deteriorated . The inventory turnover has decreased , while the number of days' sales in inventory has increased Feedback Check My Work a 1. Divide the cost of goods sold by the average inventory. Average inventory = (Beginning inventory + Ending inventory) = 2 a.2. Divide the average inventory by the average daily cost of goods sold. Average inventory = (Beginning inventory + Ending inventory) = 2. Average daily cost of goods sold = cost of goods = 365 days. b. Consider the relationship of the accounts involved. Learning Objective 3