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The following is information for Palmer Company. Year 3 $ 643,825 97,400 Cost of goods sold Ending inventory Year 2 $426,650 87,750 Year 1 $
The following is information for Palmer Company. Year 3 $ 643,825 97,400 Cost of goods sold Ending inventory Year 2 $426,650 87,750 Year 1 $ 391,300 92,500 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?
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