8. XYZ Inc. has sales of $200,000 and the following balance sheet as of 2014. Cash $10,000 Account payables $30,000 Account receivables 50,000 Other current liabilities 20,000 Inventories 150,000 Long term debt 50,000 Net fixed assets 90,000 Common equity 200,000 Total assets $300,000 Total liabilities and equity $300,000.

Calculate inventory turnover ratio of this company. If the industry average of inventory turnover ratio is 1.8x, what is your evaluation for this companys inventory turnover ratio?