1. Glad Rags, Inc. sells women's clothes. Provided below is selected financial statement information:

Glad Rags, Inc.
Selected Financial Statement data
Fiscal year end	2010	2009
(amounts in thousands of dollars)
Net sales	$47,895	$42,589
Cost of Goods Sold	(35,952)	(32,588)
Gross profit	$11,943	$10,001
Inventory	$ 5,548	$ 4,948

Required:

a.	Compute the inventory turnover ratio for 2010.
b.	Clothes, Inc. projects that sales will grow at a compound rate of 7% per year for years 2011-2013 and that the cost of goods sold to sales percentage will equal that realized in 2010. Compute the projected implied level of inventory at the end of 2011 to 2013.

ANS:

please show work not using excel