Quantifying the Effect of Inventory Write$-$offs on Ratios the following:

a$.$ Explain why Under Armour recorded an inventory write$-$off.

Under Armour wrote$-$off inventory due to a restructuring. The company was changing its operations in some way and, consequently, inventory

The balance sheet would have been

had the company not recorded the write down.

b$.$ What effect did the inventory write$-$off have on pretax income?

The inventory write$-$down GAAP pre$-$tax income by $\backslash (\backslash$$ $\backslash )$

c$.$ Calculate inventory turnover and days inventory outstanding for the current year.

Note: Round answers to the nearest dollar, if applicable.

Note: Round answers to the nearest whole number, if applicable

Days Inventory Outstanding $($DIO$)$

d$.$ If Under Armour had not written off inventory, what would it have reported for cost of goods sold? What would have been the inventory balances in the current and prior years?

e$.$ Use the adjusted cost of goods sold and inventory balances to recalculate inventory turnover and days inventory outstanding. Did the inventory write$-$off make a significant difference?

Note: Round answers to the nearest dollar, if applicable

Note: Round answers to the nearest whole number, if applicable

Days Inventory Outstanding $($DIO$)$:

The write$-$off make a significant difference in the DIO metric.