Answer:
current year 9
previous year = 12
2. current year = 40.56
previous year = 30.42
Explanation:
Inventory turnover is an example of an activity ratio
Activity ratios calculate the efficiency of performing daily task of a firm
Inventory turnover = cost of goods sold / average inventory
Average inventory = (beginning inventory + ending inventory) / 2
the number of days' sales in inventory = number of days in a period / inventory turnover
Current year = (1,120,000 + 940,000) / 2 = 1,030.000
turnover = 9,270,000 / 1,030.000 = 9
365 / 9 =40.56
Previous year
Average inventory = (940,000 + 860,000) / 2 = 900,000
Inventory turnover = 10,800,000 / 900,000 = 12
365 / 12 = 30.42
