Inventory turnover and number of days sales in inventory Financial statement data for years ending December 31 for Tango Company follow 2017 2016 Cost of goods sold $3.064,000 $4.001.500 Beginning of year 840,000 770,000 740,000 770,000 End of year Required a. Determine the inventory turnover for 2017 and 2016. Round to one decimal place 2017 2016 Inventory turnover 53 b. Determine the number of days sales in inventory for 2017 and 2010. Use 305 days and round to one decimal place. Number of days sales in inventory 2017 2016 69 days Are the changes in inventory turnover and the number of days' sales in inventory from 2016 to 2017 favorable or unfavorable Undavorable a. The inventory turnover rate indicates how many times a company has sold and replaced inventory during a period. The inventory turnover ratio is calculated by dividing the cost of goods sold for a period by the average inventory for that period b. Number of days sales in inventary indicates the average time required for a company to convert s inventory ints sales. The calculation of the number of days' sales in inventory is the average inventory for that period divided by the average daily cost of goods sold CA high ratio implies either strong sales or large dicunts