Exercise 5-13
Inventory turnover and
days' sales in inventory
Use the following information for Palmer Co. to compute inventory turnover for 2017 and 2016, and its
days' sales in inventory at December 31, 2017 and 2016. (Round answers to one decimal.) Comment on
Palmer's efficiency in using its assets to increase sales from 2016 to 2017.
2017 2016 2015
Cost of goods sold $643,825 $426,650 $391,300
Ending inventory. 97,400 87,750 92,500