SUPERSTORE reported that its inventory turnover decreased from 17.1 times in 2022 to 15.8 times in 2023. The following data appear in SUPERSTORE’s annual report.

a. Compute SUPERSTORE’s inventory turnovers for 2022 and 2023 using:

1. Cost of sales and LIFO inventory.

2. Cost of sales and FIFO inventory.

b. Some firms calculate inventory turnover using sales rather than cost of goods sold in the numerator. Calculate SUPERSTORE’s 2022 and 2023 turnover using:

1. Sales and LIFO inventory.

2. Sales and FIFO inventory.

c. Describe the method that SUPERSTORE appears to use.

d. State which method you would choose to evaluate SUPERSTORE’s performance. Justify your choice.

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Feb. 26, 2021 Feb. 25, 2022 Feb. 24, 2023 Total revenues $19,543 $19,864 $37,406 Cost of sales (using LIFO) 16,681 16,977 29,267 Year-end inventories using FIFO 1,181 1,114 2,927 Year-end inventories using LIFO 1,032 954 2,749