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E7-15 Analyzing and Interpreting the Inventory Turnover Ratio LO75 Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions): Polaris Industries Inc. Arctic Cat Textron, Inc. Required: 1. Calculate to one decimal place the inventory turnover ratio and average days to sell inventory for 2018 and 2017. 2. Did inventory turnover at Polaris improve or decline in 2018? 3. Calculate the 2018 gross profit percentage. 4. The main competitor for Polaris is Arctic Cat. Prior to being acquired by Textron, Inc., Arctic Cat reported its inventory turnover was 2.9 and its gross profit percentage was 3.5 percent. Why was Arctic Cat more likely than Polaris to require a writedown for LCM/NRV? (Select all that apply.) a. Arctic Cat had a higher number of days to sell than Polaris. b. Aretic Cat had a lower gross profit percentage than Polaris. c. Arctic Cat had a greater number of inventory turns than Polaris