Inventory Turnover and Days' Sales in Inventory

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

$20Y4$

Cost of merchandise sold $$992,800$

Inventories:

Beginning of year

$239,440$

End of year

$344,560$

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

Inventory Turnover

$20Y4$

$20Y3$

b$.$ Determine the days' sales in inventory for $20Y4$ and $20$Y$3.$ Assume $365$ days a year. Round interim calculations and final answers to one decimal place.

Days' Sales in Inventory

$20Y4$ days

$20Y3$ 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?