. Calculate the inventory turnover for the Years 2017 and 2018. B. Calculate the days' sales in inventory for the Years 2017 and 2018. C. Is the change in both the inventory turnover and the days' sales in inventory from 2017 to 2018 favorable or is it unfavorable?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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To answer the following questions, use the following information. Round to 1 decimal place for percentages.

  2018 2017 2016
Cost of merchandise sold 20,441 19,038 17,405
Inventories 5,261 5,055 4,838

 

Required:

A. Calculate the inventory turnover for the Years 2017 and 2018.

B. Calculate the days' sales in inventory for the Years 2017 and 2018.

C. Is the change in both the inventory turnover and the days' sales in inventory from 2017 to 2018 favorable or is it unfavorable? Explain your answer.

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