1. The following data are taken from the financial statements:

   	Current Year	Preceding Year
   Sales	$3,600,000	$4,000,000
   Cost of goods sold	2,000,000	2,700,000
   Beginning inventory	372,000	352,000
   Inventory, end of year	390,000	372,000

   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

   Preceding Year

   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 days

   Preceding Year 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.