alltime high ($20-322 per shale is ocenbe 2004, but then the company's CEO, CFO, and other executives began selling their shares in the company. Within a few weeks, they had cashed in over $200 million of stock. In August 2005, after DHB announced its inventory would have to be written down, the stock price fell to less than S5 per share. If you were an attorney representing DHB's investors, what evidence would you present to assert that a fraud had occurred? If you were an attorney defending DHB, what counterarguments would you make? 3 DIIB's share price reached an Lo 7-5 E7-1 3 Analyzing and Interpreting the Inventory Turnover Ratio Polari Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the fol- Arctic t lowing amounts in its financial statements (in millions) 2010 2009 Not Sales Revenue Cost of Goads Sold Aversage Inventory 2012 $3,200 2,280 2011 52.660 1900 $1,990 1,460 210 $1,570 1,170 200 220 Required I. Calculate to one decimal place the inventory turnover ratio and average days to sell inventory for 2012, 2011, and 2010. 2. Comment on any trends, and compare the effectiveness of inventory managers at Polatis to inventory managers at its main competitor, Arctic Cat, where inventory turned over 5,4 times in 2012 (67.6 days to sell), Both companies use the same inventory costing method (FIFO) E7-14 Analyzing and Interpreting the Effects of the LIFO/FIFO Choice on LO 7 Inventory Turnover Ratio Simple Plan Enterprises uses a periodic inventory system. Its records showed the following Inventory. December 31, using FIFO 38 Units @ $14= $532 Inventory, December 31, using LIFO 38 Units @ t 10