E7-13 Analyzing and Interpreting the Inventory Turnover Ratio [LO 7-5]

Aegis Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions):

	2012		2011		2010		2009
Net Sales Revenue	$	4,700	$	4,160	$	3,490	$	3,070
Cost of Goods Sold		4,020		3,550		3,050		2,670
Average Inventory		470		420		360		350

Required:
1-a.	Calculate the inventory turnover ratio for 2012, 2011, and 2010. (Round your answers to 1 decimal place.)

1-b.	Calculate the average days to sell inventory for 2012, 2011, and 2010. (Use 365 days in a year. Use rounded "Inventory Turnover Ratio" and round your answers to 1 decimal place.)

2.

Is Aegis performing better than its competitor Sabertooth where the inventory turned over is 6.9 times in 2012 (52.9 days to sell). Both companies use the same inventory costing method (FIFO).

	Yes
	No