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   Inventory Turnover and Number of Days' Sales in Inventory

   The following financial statement data for years ending December 31 for Gillispie Company are shown below.

   	2016				2015
   Cost of merchandise sold	$1,471,680				$911,040
   Inventories:
   Beginning of year	$335,070				$234,330
   End of year	482,530				335,070

   a. Determine the inventory turnover for 2016 and 2015. Round to one decimal place.

   	Inventory Turnover
   2016	fill in the blank 1
   2015	fill in the blank 2

   b. Determine the number of days' sales in inventory for 2016 and 2015. Assume 365 days a year. Round interim calculations and final answers to one decimal place.

   	Number of Days' Sales in Inventory
   2016	fill in the blank 3 days
   2015	fill in the blank 4 days

   c. Does the change in inventory turnover and the number of days' sales in inventory from 2015 to 2016 indicate a favorable or an unfavorable trend?

   FavorableUnfavorable