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Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Amsterdam Company follow: Cost of merchandise sold Inventories:

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Inventory Turnover and Days' Sales in Inventory Financial statement data for years ending December 31 for Amsterdam Company follow: Cost of merchandise sold Inventories: Beginning of year End of year 20Y4 $744,600 179,580 258,420 20Y3 $442,453 125,560 179,580 a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place. 20Y4 20Y3 Inventory Turnover b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Days' Sales in Inventory 20Y4 20Y3 days days c. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?

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