Refer to Polaris’ financial statements in Appendix A to answer the following.

Required

1. What amount of inventories did Polaris report as a current asset on December 31, 2011? On December 31, 2010?

2. Inventories represent what percent of total assets on December 31, 2011? On December 31, 2010?

3. Comment on the relative size of Polaris’ inventories compared to its other types of assets.

4. What accounting method did Polaris use to compute inventory amounts on its balance sheet?

5. Compute inventory turnover for fiscal year ended December 31, 2011, and days’ sales in inventory as of December 31, 2011.