Survey of Accounting: E9-11 The following data were extracted from the income statement
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Survey of Accounting E9-11 Inventory Analysis The following data were extracted from the income statement of Brecca Systems Inc.: Current Year Preceding Year Sales 9,700,000 7,175,000 Beginning inventories 420,000 400,000 Cost of goods sold 5,820,000 4,305,000 Ending inventories 550,000 420,000
a. Determine for each year (1.) the inventory turnover and (2) the number of days' sales in inventory. Round answers to one decimal place. b. What conclusions can be drawn from these data concerning the inventories?