Compute for each year 1 the inventory turnover and 2 the

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Reference no: EM13575844

The following data are from the income statements of Ellen Noodles Company:

Sales

$6,420,000

$6,240,000

Beginning inventory

960,000

860,000

Purchases

4,540,000

4,661,000

Ending inventory

1,020,000

960,000

(a) Compute for each year (1) the inventory turnover and (2) the average days to sell the inventory.

(b) What conclusions concerning the management of the inventory can be drawn from these data?

Reference no: EM13575844

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