E$7-15($Algo$)$ Analyzing and Interpreting the Inventory Turnover Ratio $[$LO $7-5]$

Snow Pack Corporation is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial

statements $($in millions$)$:

Required:

$1-$a$.$ Calculate the inventory turnover ratio for $2018$ and $2017.$

$1-$b$.$ Calculate the average days to sell inventory for $2018$ and $2017.$

Did inventory turnover at Snow Pack improve or decline in $2018?$

Calculate the $2018$ gross profit percentage.

The main competitor for Snow Pack is Arctic Cat. Prior to being acquired by Textron, Incorporated, Arctic Cat reported its inventory

turnover was $3\mathrm{.}1$ and its gross profit percentage was $3\mathrm{.}7$ percent. Why was Arctic Cat more likely than Snow Pack to require a write$-$

down for LCM$/$NRV$?$

Complete this question by entering your answers in the tabs below.

Req $1$A

Req $1$B

Calculate the inventory turnover ratio for $2018$ and $2017.($Round your answers to $1$ decimal place.$)$