Inventory Turnover and Days' Sales in Inventory

Financial statement data for years ending December 31 for Amsterdam Company follow:

	20Y4				20Y3
Cost of merchandise sold	$1,156,320				$739,563
Inventories:
Beginning of year	263,530				184,690
End of year	378,870				263,530

a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.

	Inventory Turnover
20Y4	fill in the blank 1
20Y3	fill in the blank 2

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	fill in the blank 3 days
20Y3	fill in the blank 4 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?