Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the following amounts in

Question:

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

Required:
1. Calculate to one decimal place the inventory turnover ratio and average days to sell inventory for 2010, 2009, and 2008.
2. Comment on any trends, and compare the effectiveness of inventory managers at Polaris to inventory managers at its main competitor, Arctic Cat, where inventory turns over 3.6 times per year (101.4 days to sell). Both companies use the same inventory costing method (FIFO).

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally.    Inventory Turnover Ratio FormulaWhere,...
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals of Financial Accounting

ISBN: 978-0078025372

4th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

Question Posted: