The Following Data Are Taken from the Financial Statements ?
(A)Determine for Each Year (1) the Inventory Turnover and

Essay

The following data are taken from the financial statements: $$\begin{array} { l r r } & \text { Current } &{ \text { Preceding } } \\& \text { Year } & \text { Year } \\\text { Net sales } & \$ 3,592,000 & \$ 4,056,000 \\\text { Cost of goods sold } & 2,092,000 & 2,656,000 \\\text { Average monthly inventory } & 332,000 & 328,000 \\\text { Inventory, end of year } & 372,000 & 347,000\end{array}$$ ?
(a)Determine for each year (1) the inventory turnover and (2) the days' sales in inventory.
(b)Comment on the favorable and unfavorable trends revealed by the data.