Question: Financial statement data for two years ending December 31 for Holland Company follow: a. Determine the inventory turnover for 20Y4 and 20Y3. b. Determine the

Financial statement data for two years ending December 31 for Holland Company follow: Cost of goods sold Inventories: Beginning of year End of year 20Y4

a. Determine the inventory turnover for 20Y4 and 20Y3.

b. Determine the number of days’ sales in inventory for 20Y4 and 20Y3. Use 365 days and round to one decimal place.

c. Are the changes in the inventory turnover and number of days’ sales in inventory from 20Y3 to 20Y4 favorable or unfavorable?

Cost of goods sold Inventories: Beginning of year End of year 20Y4 20Y3 $4,504,500 $3,715,200 788,000 850,000 760,000 788,000

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