The following is information for Palmer Company.

	Year 3	Year 2	Year 1
Cost of goods sold	$ 578,825	$ 361,650	$ 326,300
Ending inventory	102,900	93,250	98,000

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?

The following is information for Palmer Company. Cost of goods sold Ending inventory Year 3 $ 578,825 102,900 Year 2 $ 361,650 93,250 Year 1 $ 326,300 98,000 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. Ratio Numerator 1 Denominator $ 361,650 / $ 95,625 $ 93,250 / Inventory turnover Days' sales in inventory 3.8 times * 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 1 = Ratio Denominator $ 98,075 $ 5.9 times Inventory turnover Days' sales in inventory 578,825 / 102,900 / $ ~ 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? Yes (b) Did Palmer improve its days' sales in inventory from Year 2 to Year 3? Yes