Use the Following Selected Financial Information to Answer the Questions

Use the following selected financial information to answer the questions that follow.
$\begin{array}{lrrr}&\text { Year } 3&\text { Year } 2&\text { Year }1\\\text { Inventory } & \$ 56,000& \$ 64,000 & \$ 53,000 \\\text { Total assets } & 1,205,000 & 952,000 & 945,000 \\ \text { Cost of goods sold } & 360,000 & 420,000 & 440,000\\\text { Net income } & 65,000&25,000&16,000 \\\end{array}$

A) Calculate this company's inventory turnover ratid for Year 3 and Year 2.

B) Determine the number of days it would take to turn over the entire inventory at December 31, Year 3 and Year 2.

C) What problens are apparent with the compary's inventory management?