Motion Auto has the following information for the years ending December 31, 2014 and 2013:

Requirements
1. Compute the rate of inventory turnover for Motion Auto for the years ended December 31, 2014 and 2013. Round the result to two decimal places.
2. What is a likely cause for the change in the rate of inventory turnover from 2013 to 2014?€ƒ

Transcribed Image Text:

2013 (In thousands) Sales Revenue Cost of Goods Sold 2014 $242 $239 Beginning Inventory 22 $ 38 144 182 152 Net Purchases Cost of Goods Available 174 Ending Inventory Cost of Goods Sold 13 161 81 Gross Profit Operating Expenses Net Income 160 79 54 25 26