Show Me How eBook Calculator Inventory turnover and number of days' sales in inventory Financial statement data for years ending December 31 for Tango Company follow 20Y7 20Y6 Cost of goods sold $3,626,640 $3,778,845 Inventores: Beginning of year 751,900 730,000 End of year 824,900 751,900 Requirecd a. Determine the inventory turnover for 20Y7 and 20Y6. Round to one decimal place. 20Y7 20Y6 Inventory turnover b. Determine the number of days' sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place 20Y7 20Y6 days days Number of days' sales in inventory c. Are the changes in inventory turnover and the number of days' sales in inventory from 20Y6 to 20Y7 favorable or unfavorable? Unfavorable v Check My Work a. The inventory turnover ratio 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