Hulu’s Hybrids has the following information for the years ending January 31 2010 and 2009:

Requirements 1. Compute the rate of inventory turnover for Hulu’s Hybrids for the years ended January 31, 2010 and 2009. Round the result to two decimal places.
2. What is a likely cause for the change in the rate of inventory turnover from 2009 to 2010?

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(In thousands) Sales Revenue 2010 2009 $235 $213 Cost of Goods Sold: Beginning Inventory $ 23 $ 33 Net Purchases 141 147 Cost of Goods Available 164 180 Ending Inventory 6 23 Cost of Goods Sold 158 157 Gross Profit 77 56 Operating Expenses 59 42 Net Income $ 18 $ 14