Given the information below, which of the following statements is true concerning this firm's inventory turnover ratio?

a. Inventory turnover ratio has increased by 0.59 from FY2012 to FY2013, which is a favorable increase since a higher number of inventory turns is preferable.

b. Inventory turnover ratio has decreased by 0.59 from FY2012 to FY2013, which is a favorable decrease since a lower number of inventory turns is preferable.

c. Inventory turnover ratio has increased by 0.59 from FY2012 to FY2013, which is an unfavorable increase since a lower number of inventory turns is preferable.

d. Inventory turnover ratio has decreased by 0.59 from FY2012 to FY2013, which is an unfavorable decrease since a higher number of inventory turns is preferable.

Costco Income... Costco Balance... 2013 2012 $ 4644 1.480 $ 3,500 1,228 1,026 1,201 7,894 7,098 Ats Current Assets Cash and cash equivalents Short-term investments Receivables, net Merchandise inventories Deferred income taxes and other current assets Total current assets Property and Equipment Land Building and improvements Equipment and fixtures Construction in progress -560 621 $15,840 $13,52 $ 4409 $ 4,032 10.879 11,550 4.472 21.022 1403 7.145 13,881 4.201 374 19,540 IARE 12.901 Revenue Net sales $102,870 $97,062 Membership fees 2.286 2.075 Total revenue 105,156 99,137 Operating Expenses Merchandise costs $91,948 $86,823 Selling, general, and administrative 10,104 9,518 Preopening expenses 51 37 Operating income 3,053 2,759 Other income (expense) Interest expense (99) (95) Interest income and other, net 97 103 Income before income taxes 3.051 2.767 Provision for income taxes 990 1.000 Net income including noncontrolling interests 2,061 1.767 Net income attributable to noncontrolling interests (22) (58) Net income attributable to Costco $ 2,039 S 1,709 Net income per common share attributable to Costco: Basic $ 4.68 $ 3.94 Diluted S 4.63 $ 3.89 Shares used in calculation (000's) Basic 435,741 433,620 Diluted 440.512 439,373 Less accumulated depreciation and amortization Net property and equipment . Other assets Total assets ishi Liabilities and Equity 530283 $ 27.140 Current Labrities $ $ 7,303 7,872 2037 1,832 710 001 Accounts payable Acorud salaries and benetes Accrued member reward: Accrued sales and other face Deferred membership toes Other current liabilities Total current liabilities Long-term debt, excluding current portion Deferred income taxes and other liabilities 397 104 1.101 382 1.107 1187 1089 1089 13.257 4998 980 12,280 1018 $19.271 1,331 981 $14,822 0 Total liabilities Commitments and Contingencies Equity Preferred stock 5.005 par value: 100,000,000 shares authorized no shares issued and outstanding Common stock 5.005 par value: 900.000.000 shares authorized 436,839,000 and 432,350,000 shares issued and outstanding Additional paid in capital Accumulated other comprehensive (loss) income Retained earning Total Costco stockholders' equity 2 2 $ 4070 (122) 0.283 $ 4,309 150 7.834 12,301 10,833