12. One of your clients manufactures fishing boats and sells them all over the country. Boats are sold to dealers who finance their purchases on a floor-plan basis with their banks. The dealer's banks usually pay your client within two weeks of shipment. The company's profits have been increasing over the past several years. You have obtained the following information related to your 2015 audit (S in millions): Description 20152014*20132012* 2011* Major competitor Inventory Sales Cost of goods sold 65.9 64.7 46.6 5.5 5.1 43.6 39.8 36.2 32.6 16.0 10.0 7.2 13.9 110.3 92 84.7 77.9 56.8 * Audited Required Calculate the following ratios and suggest possible explanations for any unexpected results for each year and the competitor: Gross margin as a percent of sales; Inventory turnover. What inquiries and follow-up audit procedures might be performed to determine the accuracy of the client's data? a. b