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 Marine's 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 Net Revenues Cost of Goods Sold Ending Inventory $12? $100 25 Third quarter 2015 Fourth quarter 2015 2 3 162 2 194 138 2 Fiscal year 2015 First quarter 2016 Second quarter 2016 Third quarter 2016 57' 58 37' 1 30 1 02 23 8 59 54 32 2 1 30 9 2 252 1 62 2 2 192 137 Fourth quarter 2016 Fiscal year 2016 130 101 212 a. Using the fiscal year (annual) information for 2015 and 2016, calculate the gross profit margin and the inventory turnover ratio. (Round your answers to one decimal place.) Gross Inventory Profit Margin Turnover Ratio 2015 29 % X 2.3 V 2016 29% X 2.3 V 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 1 21 % X 2 36 % 3 29 % X 4 22 % X 2016 1 25 % X 2 36 % X W 29 % X 4 22 % Xd. Recalculate West Marine's inventory turnover ratios for 2015 and 2016 using a weighted average of the company's inventory investment over the yea r. (Round your answers to one decimal place.) 20l5 2.1 ~/ 20l6 2.1 x