Question 2

Martin Industries Inc., is the biggest snowmobile manufacturer in the world. Assume that it reported the following amounts in its financial statements (in millions):

202020192018 Net Sales Revenue$1,948 $1,780 $1,657 Cost of Goods Sold 1,502 1,387 1,297 Average Inventory 220 224 216

Required: 1. Calculate the inventory turnover ratio for 2020, 2019, and 2018. What do these ratios tell about the company in each year? Which was the best year for the company? (Round your answers to 1 decimal place.)

2. Calculate the average days to sell inventory for 2020, 2019, and 2018. What does the average days to sell tell about the company in each year? Which was the best year for the company? (Consider 365 days in a year. Consider inventory Turnover Ratio rounded to 1 decimal place. Round final answers to 1 decimal place.)