Inventory Turnover and Number of Days’ Sales in Inventory The following financial statement data for years ending December 31 for Gillispie Company are shown below. 2016 2015 Cost of merchandise sold $776,720 $498,225 Inventories: Beginning of year $167,900 $116,800 End of year 240,900 167,900 a. Determine the inventory turnover for 2016 and 2015. Round to one decimal place. Inventory Turnover 2016 2015 b. Determine the number of days’ sales in inventory for 2016 and 2015. Assume 365 days a year. Round interim calculations and final answers to one decimal place. Number of Days’ Sales in Inventory 2016 days 2015 days c. Does the change in inventory turnover and the number of days’ sales in inventory from 2015 to 2016 indicate a favorable or an unfavorable trend?
