OK t ences The following is information for Palmer Company. Year 3 Year 2 Cost of goods sold Ending inventory $ 613,825 99,400 $ 396,650 89,750 Year 1 $ 361,300 94,500 Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year 3 and Year 2. From Year 2 to Year 3, did Palmer improve its (a) inventory turnover and (b) days' sales in inventory? Use the above information to compute inventory turnover for Year 2, and its days' sales in inventory at December 31, Year 2 Inventory turnover Days' sales in inventory Numerator $ $ 396,650 89,750 / Denominator $ Ratio 92,125 365 4.3 times 0 Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3. Inventory turnover Days' sales in inventory Numerator Denominator $ $ 613,825/ $ 99,400 $613,825 94,575 * 365- Ratio 6.5 times 59.1 days Did Palmer improve its (a) inventory turnover from Year 2 to Year 3 and (b) days' sales in inventory from Year 2 to Year 3? (a) Did Palmer improve its inventory turnover from Year 2 to Year 3? (b) Did Palmer improve its days' sales in inventory from Year 2 to Year 3? Yes Yes