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 2017 $ 3,700 2,880 380 2018 $ 3,160 2,400 320 Required: 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? Req 1A Req 1B Req 2 Req 3 Req 4 Calculate the inventory turnover ratio for 2018 and 2017. (Round your answers to 1 decimal place.) Times per Year 2018 2017 Inventory Turnover Ratio Req 1A Req 1B Reg 2 Req 3 Req 4 Calculate the average days to sell inventory for 2018 and 2017. (Use 365 days in a year. Use rounded "Inventory Turnover Ratio" and round your answers to 1 decimal place.) Days 2018 2017 Average Days to Sell Inventory Req 1A Req 1B Req 2 Req 3 Req 4 Calculate the 2018 gross profit percentage. (Round your answer to 1 decimal place.) Gross profit percentage for 2018 %