A company reported the following data Year Year Year Cost

Question

. A company reported the following data:

	Year 1	Year 2	Year 3
Cost of goods sold	$238,000	$375,000	$495,000
Ending inventory	120,000	150,000	180,000

Required:
1. Calculate the days' sales in inventory for each year.
2. Comment on the trend in inventory management.

Answer

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