Pronghorn Electronics has enjoyed tremendous sales growth during the last 10 years. However, even though sales have steadily increased, the company's CEO, Dana Byrnes, is concerned about certain aspects of its performance. She has called a meeting with the corporate controller and the vice presidents of finance, operations, sales and marketing to discuss the company's performance. Dana begins the meeting by making the following observations: We have been forced to take significant write-downs on inventory during each of the last three years because of obsolescence. In addition, inventory storage costs have soared. We rent four additional warehouses to store our increasingly diverse inventory. Five years ago inventory represented only 20% of the value of our total assets. It now exceeds 35%. Yet, even with all of this Inventory,"stockouts" measured by complaints by customers that the desired product is not available) have increased by 40% during the last three years. And worse yet, it seems that we constantly must discount merchandise that we have too much of Dana asks the group to review the following data and make suggestions as to how the company's performance might be improved (in millions) 2017 2016 2015 2014 Inventory Raw materials $256 $198 $164 $132 110 Work in process 79 46 30 Finished goods 521 507 383 236 Total inventory $887 $784 $593 $398 Current assets Total assets $1.653 $2.795 $625 $1,530 $2,539 $560 $1,187 $2.227 5504 $895 $1.994 $455 Current liabilities Using the information provided. Compute the current ratio, gross profit rate, profit margin. Inventory turnover, and days in inventory for 2015, 2016, and 2017. Round current ratio to 2 decimal places 15.25.1 and all other answers to I decimal place, 15.2 or 15.2%) 2017 Current ratio Grossprchtrate Profit margin Inventory turnover Days in inventory days (in millions) 2017 2016 2015 2014 Inventory Raw materials $132 Work in process $256 $198 $164 110 79 46 521 507 383 Finished goods 236 Total inventory $887 $784 $593 Current assets Total assets Current liabilities $1.653 $2.795 $625 59.399 55.879 $712 $1.530 $2.539 $560 $8,781 $5.619 51,077 $1,187 $2,227 5504 $7.249 $4,247 $1.006 $895 $1.994 $455 $6.802 $3,752 $990 Sales revenue Cost of goods sold Net income Using the information provided, Compute the current ratio,gross profit rate, profit margin, inventory turnover, and days in inventory for 2015, 2016 and 2017. Round current ratio to 2 decimal c. 1525 1 and all other answers to 1 decimal place, ce 15.2 or 15.2%)
