Headquartered in Toronto, Indigo Books & Music Inc. is Canada's largest book retailer and the third largest in North America. The following information was taken from the management discussion and analysis section of the company's March 28, 2015, annual report (in thousands):

Additional information from the company's annual report:
1. Inventories are valued at the lower of cost, determined using a moving weighted average cost formula, and market, being net realizable value. Under weighted average, inventory is recorded at the level of the individual article (stock-keeping unit or SKU).
2. Costs include all direct and reasonable expenditures that are incurred in bringing inventories to their present location and condition. Vendor rebates are recorded as a reduction in the price of the products and corresponding inventory is recorded net of vendor rebates.
3. The weighted average cost of an article is continually updated based on the cost of each purchase recorded in inventory. When the company permanently reduces the retail price of an item, there is a corresponding reduction in inventory recognized in the period if the markdown incurred brings the retail price below the cost of the item.
4. The amount of inventory write downs as a result of net realizable value lower than cost was $9.4 million in 2015 ($8.6 million in fiscal 2014), and there were no reversals of inventory write- downs that were recognized in 2015 or 2014. The amount of inventory at March 28, 2015 with net realizable value equal to cost was $1.8 million ($1.8 million at March 30, 2014).
Instructions
(a) Calculate the company's inventory turnover and days sales in inventory ratios for 2015 and 2014. Comment on whether Indigo's management of its inventory improved or weakened in fiscal 2015.
(b) Does Indigo follow the lower of cost and net realizable value rule? Did the application of this rule have any effect on 2015 results? Explain.
(c) Indigo uses the moving weighted average cost formula to account for its inventories. A major competitor, Amazon.com, Inc., uses the FIFO cost formula to account for its inventories. What difficulties would this create in comparing Indigo's financial results with those of Amazon.com? Explain.

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2015 2014 2013 Cost of sales (cost of goods sold) Inventories $503,059 $493,955 $208,395 S218,979 $216,533 $495,099