Analyzing Inventory and Margin in a Seasonal Business

West Marine, Inc., opened its first boating supply store in 1975. Since that time, the company has grown to be one of the largest boating supply companies in the world, with fiscal year 2014 revenues in excess of $675 million. The accompanying table provides financial information for two recent years. West Marines fiscal year is closely aligned with the calendar year. All amounts are in millions.

Time Period Fiscal year 2014 First quarter 2015 Second quarter 2015 Third quarter 2015 Fourth quarter 2015 Fiscal year 2015 First quarter 2016 Second quarter 2016 Third quarter 2016 Fourth quarter 2016 Fiscal year 2016 Net Revenues Cost of Goods Sold Ending Inventory $214 $127 $100 257 253 162 258 194 138 237 130 102 223 705 503 223 130 98 269 252 162 254 192 137 232 130 101 212 703 497 212 b. West Marine is in a seasonal business, in which the sales total for the second and third quarters is substantially higher than the sales total for the first and fourth quarters. Calculate the company's gross profit margin by quarter. (Round your answers to one decimal place.) Gross Fiscal year Quarter Profit Margin 2015 21.3 % 1 2 36 % 3 28.9 % 4 21.5 % 2016 1 24.6 % 2 35.7 % 3 28.6 % X 4 22.3 % d. Recalculate West Marine's inventory turnover ratios for 2015 and 2016 using a weighted average of the company's inventory investment over the year. (Round your answers to one decimal place.) 2015 2.1 2016 2.2 x