Dartmouth Games reported the following information for a three-year period:

____________________     _2014                      2013                2012

Ending inventory……..$ 20,000…………$ 30,000……..$ 34,000

Sales…………………...       125,000………….128,000……...115,000

Cost of goods sold……...50,000…………...51,200……….46,000

Profit……………………        30,000……………42,000………40,000

Instructions

(a) Calculate the inventory turnover, days sales in inventory, and gross profit margin for 2014 and 2013.

(b) Based on this information, does the company's liquidity appear to be improving or deteriorating?