Harley Davidson is a motorcycle manufacturer based in Milwaukee and founded in 1903. Until recently, its motorcycles were marketed primarily to US customers born in the decades following WWII, i.e., baby boomers. A few years ago, analysts observed that Harley was building inventory, which didn't seem wise given that as baby boomers aged, there would be decreased demand for Harley motorcycles. Analysts accused the company of building excessive inventory so as to improve their accounting numbers. Harley defended the inventory build-up as good business strategy, rather than an accounting gimmick, because Harley expected demand to increase next year in response to a new advertising campaign.

1)Why would the build up of excessive inventory improve Harley's accounting numbers?

2)

It turns out that Harley was correct about the demand growing in the following year, and so the inventory build up was warranted.

Given this information, it is likely that the inventory turnover ratio

["increased", "decreased", "stayed the same"]

__________ in the year the analysts grew concerned and

["increased", "decreased", "stayed the same"]

________in the following year, when it turned out Harley was correct about demand growth.