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

S&S Industries 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 S&S improve or decline in $2018?$

Calculate the $2018$ gross profit percentage.

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

turnover was $3\mathrm{.}8$ and its gross profit percentage was $4\mathrm{.}4$ percent. Why was Arctic Cat more likely than S&S to require a write$-$down

for LCM$/$NRV$?$