1.Using the First-in, first-out method, calculate to one decimal place the inventory turnover ratio and days to sell in the current year, assuming that inventory was $500 on January 1 of this year and cost of goods sold up to December 1 was $19,000. Evaluate these measures in comparison to an inventory turnover ratio of 12.0 during the previous year.

Beg Inv= 500 End Inv= 1480 COGS= 19,000+2100= 21,100

a) Inventory Turnover Ratio= COGS/AVG Inventor=21,100/ ((500+1480)/2) =21,100/990= 21.3 times