Company a
A Company Reported the Following Amounts in Its

Company A
A company reported the following amounts in its financial statements:
$\begin{array}{lrr}&\text { Year } 2&\text { Year } 1\\\text { Average inventory } & \$ 100,000 & \$ 60,000 \\\text { Cost of goods sold } & 2,000,000 & 1,500,000\end{array}$
-Refer to the figure Company A.Which of the following best describes Company A's efficiency in managing inventory from Year 1 to Year 2?

A) It was declining; the inventory turnover ratio was decreasing.
B) It was improving; the inventory turnover ratio was increasing.
C) It was declining; the inventory turnover ratio was increasing.
D) It was improving; the inventory turnover ratio was decreasing.