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Buffalo Electronics has enjoyed tremendous sales growth during the last 10 years. However, even though sales have steadily increased, the companys CEO, Dana Byrnes, is

Buffalo Electronics has enjoyed tremendous sales growth during the last 10 years. However, even though sales have steadily increased, the companys CEO, Dana Byrnes, is concerned about certain aspects of its performance. She has called a meeting with the corporate controller and the vice presidents of finance, operations, sales, and marketing to discuss the companys performance. Dana begins the meeting by making the following observations:
We have been forced to take significant write-downs on inventory during each of the last three years because of obsolescence. In addition, inventory storage costs have soared. We rent four additional warehouses to store our increasingly diverse inventory. Five years ago inventory represented only 20% of the value of our total assets. It now exceeds 35%. Yet, even with all of this inventory, stockouts (measured by complaints by customers that the desired product is not available) have increased by 40% during the last three years. And worse yet, it seems that we constantly must discount merchandise that we have too much of.image text in transcribed
Dana asks the group to review the following data and make suggestions as to how the company's performance might be improved 2017 2016 2015 2014 (in millions) Inventory Raw materials $133 $219 110 577 906 $181 74 476 $731 $143 50 422 Work in process 247 $615$413 $775 $2,742 $2,338 $2,416 $2,011 $461 $10,178 $8,256 $7,656 $7,488 $6,141 5,728 $4,586 $3,719 $951 Finished goods Total inventory Current assets Total assets Current liabilities Sales revenue Cost of goods sold Net income $1,623 $1,335 $1,208 S599 $562 S716 $1,055 $939 Using the information provided, Compute the current ratio, gross profit rate, profit margin, inventory turnover, and days in inventory for 201 15.25:1 and all other answers to 1 decimal place, e.g. 15.2 or 15.2%.) 2017 2016 2015 Current ratio Gross profit rate Profit margin Inventory turnover Days in inventory times times times days days days

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