1. Fashion is a very seasonal business. At the end of a season, if merchants have excess inventory on hand, they often mark it down. What impact will the mark down have on the merchants inventory turnover ratio (increase it or decrease it)? Why?
2. Listed below is Pepsis (the snack and beverage company) inventory turnover for its most recent 5 years. Looking at the overall trend from 2016 to 2020, what does that trend tell you about Pepsi? What does this trend tell you about the performance? Would you invest in Pepsi based on these results?

Year 2020 2019 2018 2017 2016

Inventory Turnover 10.37 9.8 9.43 8.94 8.45