Financial statement data for years ending December 31 for Tango Company follow:

_____________________________ 20Y7 __________________ 20Y6

Cost of merchandise sold ......... $3,864,000 ................. $4,001,500

Inventories:

Beginning of year ..................... 770,000 ...................... 740,000

End of year ............................ 840,000 ....................... 770,000

a. Determine the inventory turnover for 20Y7 and 20Y6.

b. Determine the days' sales in inventory for 20Y7 and 20Y6. Use 365 days and round to one decimal place.

c. Does the change in inventory turnover and the days' sales in inventory from 20Y6 to

20Y7 indicate a favorable or an unfavorable trend?