West Marine, Inc., opened its first boating supply store in 1975. Since that time, the company has grown to be one of the largest boating supply companies in the world, with fiscal year 2014 revenues in excess of $675 million. The accompanying table provides financial information for two recent years. West Marine's fiscal year is closely aligned with the calendar year. All amounts are in millions.

a. Using the fiscal year (annual) information for 2015 and 2016, calculate the gross profit margin and the inventory turnover ratio.

b. West Marine is in a seasonal business, in which the sales total for the second and third quarters is substantially higher than the sales total for the first and fourth quarters. Calculate the company's gross profit margin by quarter. What do you learn from the seasonal pattern in the gross profit margin?

c. What is the seasonal pattern in inventory balances? What effect does West Marine's choice of fiscal year-end have on the inventory turnover ratio calculated in a?

d. Recalculate West Marine's inventory turnover ratios for 2015 and 2016 using a weighted average of the company's inventory investment over the year.

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Time Period Net Revenues Cost of Goods Sold Ending Inventory Fiscal year 2014. First quarter 2015 Second quarter 2015 Third quarter 2015 Fourth quarter 2015. Fiscal year 2015.. First quarter 2016 Second quarter 2016 Third quarter 2016 Fourth quarter 2016 Fiscal year 2016. $214 $127 $100 257 253 162 258 138 102 194 237 ....4 130 223 705 503 223 130 98 269 252 162 254 192 137 232 130 101 212 703 497 212