Refer to the data in BE6.16 for Reynold’s Company. Assume for 2023 the company had an inventory turnover ratio of 9.1 and 40.1 days sales in inventory. Has the company’s inventory management improved or deteriorated in 2024? Explain.

Data from BE6.16

Reynold’s Company had net sales of $2,500,000, cost of goods sold of $1,150,000, and profit of $500,000 in 2024. The company had a January 1, 2024, inventory balance of $132,000 and a December 31, 2024, inventory balance of $143,000. Calculate the inventory turnover and days sales in inventory ratios for 2024.