Inventory Turnover and Days' Sales in Inventory The Eastern Corporation installed a new inventory management system at the beginning of 2015. Eastern reported an inventory turnover of 2.80 in 2015. Shown below are data from the company's accounting records as reported by the new system:
| 2015 | 2016 |
| Sales Revenue |
$19,000,000 |
$20,000,000 |
| Cost of goods sold |
8,500,000 |
8,900,000 |
| Beginning inventory |
2,500,000 |
2,530,000 |
| Ending inventory |
2,530,000 |
2,600,000 |
Calculate the company's (a) inventory turnover and (b) days' sales in inventory for 2015 and 2016.
Round your answers to two decimal points. HINT: Use your rounded answers for inventory turnover to calculate days' sales in inventory.
| 2015 | 2016 |
| Inventory turnover |
Answer |
Answer |
|
|
|
| Days' sales in inventory |
Answer |
Answer |