Refer to the following selected financial information from Helpful Hardware. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.) Merchandise inventory Cost of goods sold Year 2 281,000 476,400 Year 1 263,500 423, 100

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Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.