ses transcript Exercise 5-19 (Algo) Inventory turnover and days' sales in inventory LO A3 The following is information for Palmer Company. Cost of goods sold Ending inventory Year 3 $ 553,825 105,400 Inventory turnover Days' sales in inventory Inventory turnover Days' sales in inventory Saved Year 2 $ 336,650 95,750 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. Numerator 1 Denominator Ratio 336,650 / 95,750 / $ $ Year 1 $ 301,300 100,500 $ $ Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3. + Ratio Numerator 1 Denominator 553,825 / 105,400 / 365 = = x 365 = 0 0 Yes Yes 0 0 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? Help

Exercise 5-19 (Algo) Inventory turnover and days' sales in inventory LO A3 The following is information for Palmer Company. Use the above information to compute inventory turnover for Year 3 and Year 2, and its days' sales in inventory at December 31, Year and Year 2. From Year 2 to Year 3 , did Paimer improve its (a) inventory turnover and (b) days' sales in inventory