Book selling is a tough competitive business, and so far, Classic Readers Nook has succeeded by providing good service, a warm atmosphere and offering hard-to-find titles. However, the owner of the store is becoming concerned about the stores performance, mainly the declining cash balance, despite an increase in sales. She has asked you to look at the stores performance over the past three years to see if you can detect any problems that should be dealt with. She has provided you with the following information:

Classic Readers Nook Selected Financial Information for the Year Ended Aug 31,
	2019	2018	2017	2016
Sales	47,365	45,985	44,420
Cost of Goods Sold	32,970	31,700	30,290
Gross Profit	14,395	14,285	14,130
Inventory	14,835	13,865	12,435	11,730

Required:

1. Calculate the inventory turnover ratio and the days to sell for 2019, 2018 and 2017 (show your calculations and round each calculation to one decimal place). [3 marks]

2019:

2018:

2017:

2. Discuss the implications of the inventory turnover ratio and days to sell as calculated in part b. Discuss possible reasons and potential impact on the company for any changes in the calculations. [3 marks]