A Company Reported the Following Data Required:
1

question 45

Essay

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

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Definitions:

Active Ingredient

The component of a medication or substance that is biologically effective and responsible for its intended effects.

PCP

Phencyclidine, a dissociative drug known for its mind-altering effects, which can include delusions and hallucinations.

Amphetamines

A group of stimulant drugs that increase activity in the brain and body, often used to treat ADHD and narcolepsy.

Stimulants

Substances that increase activity in the central nervous system or the sympathetic nervous system, heightening alertness, attention, and energy.