1. Following information applies to the following questions. The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

   Balance Sheet (Millions of $)
   Assets				2010
   Cash and securities				$1,290
   Accounts receivable				9,890
   Inventories				13,760
   Total current assets				$24,940
   Net plant and equipment				$18,060
   Total assets				$43,000
   Liabilities and Equity
   Accounts payable				$8,170
   Notes payable				6,020
   Accruals				4,730
   Total current liabilities				$18,920
   Long-term bonds				$8,815
   Total debt				$27,735
   Common stock				$5,805
   Retained earnings				9,460
   Total common equity				$15,265
   Total liabilities and equity				$43,000
   Income Statement (Millions of $)				2010
   Net sales				$51,600
   Operating costs except depreciation				48,246
   Depreciation				903
   Earnings bef interest and taxes (EBIT)				$2,451
   Less interest				927
   Earnings before taxes (EBT)				$1,524
   Taxes				533
   Net income				$990
   Other data:
   Shares outstanding (millions)				500.00
   Common dividends (millions of $)				$346.67
   Int rate on notes payable & L-T bonds				6.25%
   Federal plus state income tax rate				35%
   Year-end stock price				$23.77

   What is the firm's inventory turnover ratio?

   		3.75
   		3.98
   		3.19
   		3.23
   		3.79