Glad Rags, Inc. sells women's clothes. Provided below is selected financial statement information:

Glad Rags, Inc.

Selected Financial Statement data 2015 2014

Fiscal Year end

(amounts in thousands of dollars)

Net Sales $48,000 $42,000

COGS (36,000) (32,000)

Inventory $5,000 $3,000

A/P $4,200 $4,500

Required:

a. Compute the inventory turnover ratio for 2010.

b. Clothes, Inc . projects that sales will grow at a compound rate of 10% per year for the year 2016 and that the cost of goods sold to sales percentage will equal that realized in 2015. Compute the projected implied level of inventory at the end of 2016.

c. Under the same assumption as above, forecast A/P at the end of 2016.