Given the Inventory Turnover (based on a 365-day year) (Cost of Goods Sold divided by Average Inventories ) is 9.78; and the Number of Days' Sales in Inventory (Inventory at Year-End divided by Average Days' Cost of Goods Sold) is 40.31.
Based upon the data above, to what extent does the Company need to be concerned about its Inventory management policies? In assessing Inventory management policies, would you be more interested in knowing the Current Ratio or Acid-Test (Quick) Ratio information? Please explain.