Use the Information That Follows Taken from Carter Company's Financial

Use the information that follows taken from Carter Company's financial statements for the years ending December 31, 2017 and 2016.
$\begin{array}{lrr}\text { Balance Sheet Information }&2017&2016\\\hline \text { Assets}\\\text { Cash } & \$ 70 & \$ 80 \\\text { Accounts receivable } & 40 & 40 \\\text { Inventory } & 40 & 60 \\\text { Land, building, and equipment } & \underline{290} & \underline{310} \\\text { Total Assets } & \$ \underline{440} & \$ \underline{490} \\\end{array}$

$\begin{array}{l}\text { Liabilities and Shareholders' Equity }\\\hline \text { Accounts payable } & \$ 95 & \$ 245 \\\text { Common stock } & 210 & 210 \\\text { Retained earnings } & 135& 35\\\text { Total Liabilities \& Shareholders' Equity }& \underline{\$440} &\underline{ \$490} \\\end{array}$

$\begin{array}{lr}\text { Income Statement Information }\\\text { Sales (all sales are on credit) } & \$ 900 \\\text { Cost of goods sold } & \underline{300} \\\text { Gross profit } & {\$600}\\\text { Operating expenses } & \underline{ 500} \\\text { Net income } & \underline{ \$(100)} \end{array}$
If the industry in which Carter is a member has an inventory turnover of 11 times, determine if in 2017, Carter is more or less efficient at converting inventory into sold units than the average firm in its industry. Explain what information this ratio provides you.