Determine the inventory turnover and days in inventory for 2013 and 2014. Discuss the changes in the… 1 answer below »

Early in 2014, Chien Company switched to a just-in-time inventory system. Its sales, cost of goods sold, and inventory amounts for 2013 and 2014 are shown below.

2013

2014

Sales

$3,120,000

$3,713,000

Cost of goods sold

1,200,000

1,425,000

Beginning nventody

180,000

220,000

Ending inventory

220,000

100,000

Determine the inventory turnover and days in inventory for 2013 and 2014. Discuss the changes in the amount of inventory, the inventory turnover and days in inventory, and the amount of sales across the two years.

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