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Question
The following data are available for Martin Solutions, Inc.:
| Year 2 | Year 1 | |
| Sales | $1,139,600 | $1,192,320 |
| Beginning merchandise inventory | 80,000 | 64,000 |
| Cost of merchandise sold | 500,800 | 606,000 |
| Ending merchandise inventory | 72,000 | 80,000 |
a. Determine for each year:
(1) Inventory turnover
(2) Number of days sales in inventory (Round the intermediate computation to the nearest whole number and the final answer to one decimal place.)
b. What conclusions can be drawn from these data concerning the inventories?
Answer
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