Exercise $4-4$ Inventory Turnover Ratio $($a driver of Efficiency$)$

Number of Days$$ Sales in Inventory

A$.$ When calculating the $2017$ Inventory Turnover Ratio, which financial statement line items

are used for the:

$1.2.$ Numerator? $$ The line item name on Toro$$s financial statement and the $ amount.

Denominator? $$ The line item name on Toro$$s financial statement and the $ amounts.

B$.$ Calculate Toro$$s Inventory Turnover Ratio for $2017.$ Round Average Inventory to a whole

number. Round your final answer to $2$ decimal places.

C$.$ The Inventory Turnover Ratio is a$($n$)$:

$$up$-$arrow indicator $$down$-$arrow indicator $$up$-$down$-$arrow indicator

D$.$ On the Answer Sheet under your answer for item B$.$ is Toro$$s $2016$ Inventory Turnover

Ratio. Which year, $2017$ or $2016,$ had a better Inventory Turnover Ratio?

E$.$ Calculate Toro$$s Number of Days$$ Sales in Inventory for $2017.$ Utilize the Turnover Ratio

calculated in B$.$ above. Round your final answer to $2$ decimal places.

F$.$ Number of Days$$ Sales in Inventory is a$($n$)$:

$$up$-$arrow indicator $$down$-$arrow indicator $$up$-$down$-$arrow indicator

G$.$ On the Answer Sheet under your answer for item E$.$ is Toro$$s $2016$ Number of Days$$ Sales

in Inventory. Which year, $2017$ or $2016,$ had a better Number of Days$$ Sales in Inventory?