The following is information for Palmer Co.

	Year 3		Year 2		Year 1
Cost of goods sold	$	568,825	$	351,650	$	316,300
Ending inventory		103,900		94,250		99,000

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	/	Denominator	=	Ratio
Inventory turnover	$351,650	/	$96,625	=	3.6	times
Days' sales in inventory				x 365 =	0
Use the above information to compute inventory turnover for Year 3, and its days' sales in inventory at December 31, Year 3.
	Numerator	/	Denominator	=	Ratio
Inventory turnover	$568,825	/	$99,075	=	5.7	times
Days' sales in inventory				x 365 =	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?