Inventory Turnover

Consider the following financial statement information for Hi-Tech Instruments:

For the Year Ended December 31
(Thousands of Dollars, except Earnings per Share)
Sales revenue	$210,000
Cost of goods sold	125,000
Net income	8,300
Dividends	2,600
Earnings per share	4.15

HI-TECH INSTRUMENTS, INC.
Balance Sheets
	December 31
(Thousands of Dollars)	Current Year	Prior Year
Assets
Cash	$18,300	$18,000
Accounts receivable (net)	46,000	41,000
Inventory	39,500	43,700
Total Current Assets	103,800	102,700
Plant assets (net)	52,600	50,500
Other assets	15,600	13,800
Total Assets	$172,000	$167,000
Liabilities and Stockholders Equity
Notes payablebanks	$6,000	$6,000
Accounts payable	22,500	18,700
Accrued liabilities	16,500	21,000
Total Current Liabilities	45,000	45,700
9% Bonds payable	40,000	40,000
Total Liabilities	85,000	85,700
Common stock*	50,000	50,000
Retained earnings	37,000	31,300
Total Stockholders Equity	87,000	81,300
Total Liabilities and Stockholders Equity	$172,000	$167,000

*Common stock: $25 par value, 2,000,000 shares outstanding.

Industry Average Ratios for Competitors
Quick ratio	1.3
Current ratio	2.4
Accounts receivable turnover	5.9 times
Inventory turnover	3.5 times
Debt-to-equity ratio	0.73
Gross profit percentage	42.8 percent
Profit margin	4.5 percent
Return on assets	7.6 percent

Calculate the companys inventory turnover for the current year. Round answer to two decimal places (ex: 2.97543 = 2.98).