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A Company Reported the Following Data Required:
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Question 153

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A company reported the following data:
 Year 1  Year 2  Year 3  Cost of goods sold $238,000$375,000$495,000 Ending inventory 120,000150,000180,000\begin{array} { | l | r | r | r | } \hline &{ \text { Year 1 } } & { \text { Year 2 } } &\text { Year 3 } \\\hline \text { Cost of goods sold } & \$ 238,000 & \$ 375,000 & \$ 495,000 \\\hline \text { Ending inventory } & 120,000 & 150,000 & 180,000 \\\hline\end{array}
Required:
1.Calculate the days' sales in inventory for each year.
2.Comment on the trend in inventory management.

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2.The company has a trend of decre...

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