The following data were extracted from the income statement of Brecca Systems Inc.:

a. Determine for each year
(1) The inventory turnover and
(2) The number of days’ sales in inventory. Round to nearest dollar and one decimal place.
b. What conclusions can be drawn from these data concerning theinventories?

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Current YePreceding Year Sales Beginning inventories Cost of goods sold Ending inventories $9,700,000 420,000 5,820,000 550,000 $7,175,000 400,000 4,305,000 420,000