Fred Koontz owns and operates a sporting goods store. Following are selected financial data regarding Koontz€™s business over the past three years.

Required:
(a) Compute the inventory turnover ratio and age of inventory for Koontz€™s store for each year listed. On January 1, 2007, the store€™s inventory was $60,000.
(b) Given the data provided and the ratios you computed in part (1), evaluate Koontz€™s management of inventory over this three-year period.
(c) Koontz is concerned by the slow growth in his company€™s net income in recent years. Given the data provided, identify factors that may be adversely affecting the business€™s profitability.

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2007 2008 2009 $840,000 $900,000 $990,000 Cost of Goods Sold 504,000 585,000 673,200 111,300 5,500 118,800 Ending Inventory 80,000 103,000 118,000 Net Sales Net Income