Whistler Blackcomb Holdings Inc. has a 75% interest in Whistler Mountain Resort and Blackcomb Skiing Enterprise. The two companies operate a four-season mountain resort in Whistler, British Columbia. Exhibit 7-24 contains the statement of financial position and Notes 5 and 9 of the accompanying notes from the company€™s 2013

Required:
a. Calculate the inventory turnover ratio and the number of days sales in inventory for 2013 and 2012. Use the year-end inventory balances instead of the average inventory amounts. Comment on the results of your analysis.
b. Calculate Whistler Blackcomb€™s gross margin ratio for 2013 and 2012.
c. Comment on the challenges you encountered in calculating the gross margin ratio. For example, what amount of revenue did you use?
d. Based on your calculations in part €œb€ and the challenges identified in part €œc,€ comment on the appropriateness of using the gross margin ratio to analyze Whistler Blackcomb€™s results.
e. Comment on the possible reasons for the revenue presentation format used by Whistler Blackcomb.

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WHISTLER BLACKCOMB HOLDINGS INC.'S 2013 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION EXHIBIT 7-24A Consolidated Statements of Financial Position As at September 30, 2013 and 2012 in thousands) Note 2013 2012 Recast (note 2) Assets Current assets: $41,353 3,323 $43,634 3,481 240 13,788 3,104 303 64,550 2,792 328,414 9,244 324.028 135,574 864.602 Cash and cash equivalents Accounts receivable Income taxes receivable Inventory Prepaid expenses Notes receivable 15,856 2,727 311 63,570 2,636 322,316 9,244 311,428 137,259 846,453 10 Notes receivable Property, buildings and equipment Property held for development Intangible assets Goodwill 10 12 Liabilities and Shareholders' Equity Current liabilities: 24,927 1,645 2,858 22,347 51,777 258,042 20,690 72,796 403,305 Accounts payable and accrued liabilities Income taxes payable 24,060 153 2,903 20,718 47,834 256,800 15,489 72.796 392,919 13 Deferred revenue Long-term debt Deferred income tax liability Limited Partner's interest Total liabilities 2,3(f) Equity 442,080 441,476 Whistler Blackcomb Holdings Inc. shareholders equity Common shares; no par value; unlimited number authorized; 37,958 outstanding (Septernber 30, 2012-37,908) Additional paid-in capital Deficit 913 721 (31,887) 410,310 61,373 471,683 $864,602 (54,781) Total Whistler Blackcomb Holdings Inc. shareholders' equity 388,212 54,936 443,148 $846,453 Limited Partner's non-controlling interest EXCERPT FROM NOTES TO WHISTLER BLACKCOMB HOLDINGS ING.S 2013 FINANCIAL STATEMENTS EXHIBIT 7-24B 5. Resort operations Resort revenue, operating expenses (excluding depreciation and amortization) and selling, general and administrative are comprised of the following: 2013 2012 Resort revenue: Lift Retail and rental Snow school Food and beverage Other $123,289 40,332 25,536 30,155 21,468 $240,780 $121,093 39,747 24,899 29,815 20,818 $236,372 Operating expenses: Operating labour and benefits Retail and food services cost of sales Property taxes, utilities, rent and insurance Supplies, maintenance and other $61,092 26,756 18,956 19,869 $126,673 $ 59,089 26,409 18,682 20,045 $124,225 Seling, general and administrative expenses: 12,656 15,017 27,673 $ 12,647 14,291 $ 26,938 Labour and benefits Other EXCERPT FROM NOTES TO WHISTLER BLACKCOMB HOLDINGS INC.'S 2013 FINANCIAL STATEMENTS 9. Inventory 2013 2012 Retail goods Food and beverage Mountain operating supplies $14,056 245 1,555 $15,856 $12,068 200 1,520 $13,788