The Following Information Is Available from Recent Financial Statements of Competitor

Essay

The following information is available from recent financial statements of Competitor A and Competitor B: $$\begin{array} { | l | r | r | } \hline & \text { Competitor A } & \text { Competitor B} \\\hline \text { Ending inventory } & \$ 6,031 & \$ 4,816 \\\hline \text { Beginning inventory } & 6,162 & 5,044 \\\hline \text { Cost of goods sold } & 21,761 & 27,257 \\\hline \text { Sales } & 29,656 & 36,704 \\\hline\end{array}$$ Requirement: (a) Calculate the inventory turnover and days in inventory for both companies. (b) What conclusion concerning the management of inventory can be drawn from these data?