Question

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 “b” and the challenges identified in part “c,” 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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  • CreatedJune 11, 2015
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