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

Aegis Industries Incorporated 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 Aegis improve or decline in $2018?$

Calculate the $2018$ gross profit percentage.

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

turnover was $4\mathrm{.}5$ and its gross profit percentage was $5\mathrm{.}1$ percent. Why was Arctic Cat more likely than Aegis to require a write$-$

down for LCM$/$NRV$?$

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

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

$2.$ Did inventory turnover at Aegis improve or decline in $2018?$

$3.$ Calculate the $2018$ gross profit percentage.

$4.$ The main competitor for Aegis is Arctic Cat. Prior to being acquired by Textron, Incorporated, Arctic Cat reported its inventory turnover was $4\mathrm{.}5$ and its gross profit percentage was $5\mathrm{.}1$ percent. Why was Arctic Cat more likely than Aegis to require a write$-$down for LCM$/$NRV$?$