Inventory Turnover and Days' Sales in Inventory

The following financial statement data for years ending December 31 for Holland Company are shown below.

	20Y4				20Y3
Cost of merchandise sold	$1,103,760				$696,274
Inventories:
Beginning of year	215,350				151,110
End of year	310,250				215,350

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 20Y3. 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 inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?