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?
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