The following data were extracted from the income statement of Keever Inc.:
Current Year Previous Year
Sales..........................$18,500,000....................$20,000,000
Beginning inventories...........940,000..........................860,000
Cost of goods sold............9,270,000.....................10,800,000
Ending inventories.............1,120,000........................940,000
a. Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. Round to the nearest dollar and one decimal place.
b. What conclusions can be drawn from these data concerning the inventories?