a)Fashion is a very seasonal business.At the end of a season, if merchants have excess inventory on hand, they often mark it down.What impact will the mark down have on the merchant's inventory turnover ratio (increase it or decrease it)? Why?

b)Listed below is Pepsi's (the snack and beverage company) inventory turnover for its most recent 5 years.Looking at the overall trend from 2015 to 2019, what does that trend tell you about Pepsi? What does this trend tell you about the performance? Would you invest in Pepsi based on these results?

Year20192018201720162015

Inventory Turnover10.379.89.438.948.45