Problem:
Suppose the Robinson Company had a cost of goods sold of $1,000,000 in 2010 and $1,200,000 in 2011.
Required:
Question 1: Calculate the inventory turnover for each year. Comment on your findings.
Question 2: What would have been the amount of inventories in 2011 if the 2010 turnover ratio had been maintained?
Note: Please describe comprehensively and provide step by step solution.