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The following is information for Palmer Co.
| | 2017 | 2016 | 2015 |
| Cost of goods sold | $ | 643,825 | $ | 426,650 | $ | 391,300 |
| Ending inventory | | 97,400 | | 87,750 | | 92,500 |
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Use the above information to compute inventory turnover for 2017 and 2016, and its days' sales in inventory at December 31, 2017 and 2016.
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| | | (a) Use the above information to compute inventory turnover for 2016, and its days' sales in inventory at December 31, 2016. | | | Numerator | / | Denominator | = | Ratio | | | Inventory turnover | $426,650 | / | $90,125 | = | 4.7 | times | | Days' sales in inventory | | | | | 0 | | | | | | | | | | | (b) Use the above information to compute inventory turnover for 2017, and its days' sales in inventory at December 31, 2017. | | | Numerator | / | Denominator | = | Ratio | | | Inventory turnover | $643,825 | / | $92,575 | = | 7.0 | times | | Days' sales in inventory | | | | | 0 | | |
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