Inventory Analysis The following data were extracted from the income statement of Keever Inc.: ...
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Accounting
Inventory Analysis
The following data were extracted from the income statement of Keever Inc.:
Current Year
Previous Year
Sales
$1,533,000
$1,603,100
Beginning inventories
72,070
102,996
Cost of goods sold
766,500
890,600
Ending inventories
65,270
72,070
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. Number of days' sales in inventory
days
days
b. The inventory position of the business has . The inventory turnover has , while the number of days' sales in inventory has .
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