E7-15 (Algo) Analyzing and Interpreting the Inventory Turnover Ratio [LO 7-5] Clark & Scott Corporation is...

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E7-15 (Algo) Analyzing and Interpreting the Inventory Turnover Ratio [LO 7-5] Clark & Scott Corporation is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions): Net Sales Revenue Cost of Goods Sold. Average Inventory Required: 2017 $ 3,700 2,880 380 2018 $ 3,160 2,400 320 1-a. Calculate the inventory turnover ratio for 2018 and 2017. 1-b. Calculate the average days to sell inventory for 2018 and 2017. 2. Did inventory turnover at Clark & Scott improve or decline in 2018? 3. Calculate the 2018 gross profit percentage. 4. The main competitor for Clark & Scott is Arctic Cat. Prior to being acquired by Textron, Incorporated, Arctic Cat reported its inventory turnover was 3.4 and its gross profit percentage was 4.0 percent. Why was Arctic Cat more likely than Clark & Scott to require a write-down for LCM/NRV? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2 Req 3 Req 41 Calculate the inventory turnover ratio for 2018 and 2017. (Round your answers to 1 decimal place.) Times per Year E7-15 (Algo) Analyzing and Interpreting the Inventory Turnover Ratio [LO 7-5] Clark & Scott Corporation is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions): Net Sales Revenue Cost of Goods Sold. Average Inventory Required: 2017 $ 3,700 2,880 380 2018 $ 3,160 2,400 320 1-a. Calculate the inventory turnover ratio for 2018 and 2017. 1-b. Calculate the average days to sell inventory for 2018 and 2017. 2. Did inventory turnover at Clark & Scott improve or decline in 2018? 3. Calculate the 2018 gross profit percentage. 4. The main competitor for Clark & Scott is Arctic Cat. Prior to being acquired by Textron, Incorporated, Arctic Cat reported its inventory turnover was 3.4 and its gross profit percentage was 4.0 percent. Why was Arctic Cat more likely than Clark & Scott to require a write-down for LCM/NRV? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2 Req 3 Req 41 Calculate the inventory turnover ratio for 2018 and 2017. (Round your answers to 1 decimal place.) Times per Year