5.8

The following is information for Palmer Company. Cost of goods sold Ending inventory Year 3 $ 568,825 103,900 Year 2 $ 351,650 94,250 Year 1 $ 316,300 99,000 Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2. From Year 2 to Year 3, did Palmer improve its (a) inventory turnover and (b) days' sales in inventory? Use the above information to compute inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2. Numerator 1 Denominator Ratio 0 Inventory turnover Days' sales in inventory x 365 = 0 Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3. Numerator | Denominator Ratio 0 Inventory turnover Days' sales in inventory 0 Did Palmer improve its (a) inventory turnover from Year 2 to Year 3 and (b) days' sales in inventory from Year 2 to Year 3? (a) Did Palmer improve its inventory turnover from Year 2 to Year 3? (b) Did Palmer improve its days' sales in inventory from Year 2 to Year 3