The following information is available from the annual reports of Young and Olde: 
Instructions
(a) Calculate the inventory turnover and days in inventory for both companies.
(b) Calculate Young's inventory turnover after adjusting for the LIFO reserve. Young uses the LIFO inventory method.
(c) What conclusion concerning the management of inventory can be drawn from these data?
Definitions:
Selling and Administrative Costs
Expenses related to the selling of products or services and the general administrative activities of a business.
Markup Percentage
The proportion added onto the purchase price of goods to accommodate for overhead costs and gain profit.
Product Cost Method
An accounting technique that assigns all costs associated with production to the products, including materials, labor, and overhead.
Variable Cost Method
An accounting method that allocates costs to goods produced based on variable costs, which change with the level of production.
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