Inventory TurnoverandNumber of Days' Sales in Inventory

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

	2016	2015
Cost of merchandise sold	$776,720			$498,225
Inventories:
Beginning of year	$167,900			$116,800
End of year	240,900				167,900

a. Determine the inventory turnover for 2016 and 2015. Round to one decimal place.

Inventory Turnover

2016

2015

b. Determine the number of days' sales in inventory for 2016 and 2015. Assume 365 days a year. Round interim calculations and final answers to one decimal place.

Number of Days' Sales in Inventory
2016	days
2015	days

c. Does the change in inventory turnover and the number of days' sales in inventory from 2015 to 2016 indicate a favorable or an unfavorable trend?