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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:
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 $1,141,720 275,210 396,390 20Y3 $724,160 191,990 275,210 a. Determine the inventory turnover for 2014 and 20Y3. Round to one decimal place. Inventory Turnover 20Y4 20Y3 b. Determine the days' sales in inventory for 2014 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 2013 to 2014 indicate a favorable or an unfavorable trend?
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