Question: Inventory Turnover and Days Sales in Inventory Financial statement data for years ending December 31 for Amsterdam Company follow: Cost of merchandise sold Inventories:

Inventory Turnover and Days Sales in Inventory Financial statement data for years ending December 31 for Amsterdam Company follow: Cost of merchandise sold Inventories: Beginning of year End of year 2014 $645,320 155,490 224,110 2013 $422,816 108,770 155,490 a. Determine the inventory turnover for 2014 and 2013. Round to one decimal place. 2014 2013 Inventory Turnover b. Determine the days' sales in inventory for 2014 and 2013. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Days' Sales in Inventory 2014 2013 days days c. Does the change in the inventory turnover and the days' sales in inventory from 2013 to 2014 indicate a favorable or an unfavorable trend?

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