Information on the activities of Novel-T Toys Ltd. is as follows:

Required

a. Do a trend analysis of the inventory turnover for each year. Also calculate the days to sell inventory ratio for the respective years.

b. Is Novel-T Toys Ltd. managing its inventories efficiently? Do you have enough information to answer this question? If not, what else do you need to know?

c. Provide an example of a situation where management may deliberately reduce inventory turnover, but still be operating in the company’s best long-term interests.

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2018 $893,100 $1,002,700 $1,174,500 $1,326,300 206,310 2016 2017 2019 2020 Cost of goods sold Average inventory $1,391,780 442,990 128,450 157,100 323,420