The following data are taken from the financial statements:

Current YearPreceding YearSales$3,600,000$4,000,000Cost of goods sold2,000,0002,700,000Beginning inventory372,000352,000Inventory, end of year390,000372,000

a.Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory.

1.The inventory turnover: (If required, round your answers to one decimal place.)

Current Year

fill in the blank 1

Preceding Year

fill in the blank 2

2.The number of days' sales in inventory: Assume a 365-day year. (Round your intermediate calculation to whole number and final answers to two decimal places.)

Current Year

fill in the blank 3

days

Preceding Year

fill in the blank 4

days

b.Comment on the favorable and unfavorable trends revealed by the data.

Sales

while gross profit

. The inventory turnover

and the number of days' sales in inventory

, which are unfavorable trends.