A Company Reported the Following Data Required:
1

Essay

A company reported the following data:
$$\begin{array} { | l | r | r | } \hline & \text { Year 1 } & \text { Y ear 2 } \\\hline \text { Cost of goods sold } & \$ 317,500 & \$ 279,100 \\\hline \text { Average inventory } & 72,000 & 93,000 \\\hline\end{array}$$ Required:
1. Calculate the company's merchandise inventory turnover for each year.
2. Comment on the company's efficiency in managing its inventory.