1. Financial statement data for years ending December 31 for Amsterdam Company follow:

   	20Y4				20Y3
   Cost of merchandise sold	$3,598,900				$3,015,630
   Inventories:
   Beginning of year	593,000				589,600
   End of year	648,000				593,000

   a. Determine the inventory turnover for 20Y4 and 20Y3. Round to one decimal place.

   	Inventory Turnover
   20Y4
   20Y3

   b. Determine the days' sales in inventory for 20Y4 and 20Y3. Assume 365 days a year. Round interim calculations and final answers to one decimal place.

   	Days' Sales in Inventory
   20Y4
   20Y3

   c. Does the change in the inventory turnover and the days' sales in inventory from 20Y3 to 20Y4 indicate a favorable or an unfavorable trend?