Early in 2015, Chien Company switched to a just-in-time inventory system. Its sales revenue, cost of goods sold, and inventory amounts for 2014 and 2015 are shown below.

Determine the inventory turnover and days in inventory for 2014 and 2015. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales revenue across the twoyears.

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2014 2015 $3,120,000 $3,713,000 Sales revenue Cost of goods sold Beginning inventory Ending inventory 1,200,000 180,000 220,000 1,425,000 220,000 100,000