Question 8

1. Use the following Income Statement and Balance Sheet Information for 2018 to answer the question below. This is a Retail Company. All numbers are in Millions.

   Income Statement
   Total Sales	202.4
   Cost of Sales	154.5
   Gross Profit	202.4-154.5
   Selling and Administrative Expenses	22.1
   Research and Development	7.5
   Depreciation and Amortization	4.9
   Other Income	4.6
   EBIT	202.4-154.5-22.1-7.5-4.9+4.6
   Interest Expense	6.5
   Pretax Income	202.4-154.5-22.1-7.5-4.9+4.6-6.5
   Taxes	( 202.4-154.5-22.1-7.5-4.9+4.6-6.5 )*0.30
   Net Income	( 202.4-154.5-22.1-7.5-4.9+4.6-6.5 )*0.70
   Balance Sheet
   Assets		Liabilities
   Cash	78.3	Accounts Payable	40.3
   Accounts Receivable	47.7	Notes Payable/Short term debt	1.1
   Inventories	5.5
   Total Current Assets	78.3+47.7+5.5	Total Current Liabilities	40.3+1.1
   Net property, plant and equipment	99.3	Long-term debt	83.2
   Total long-term assets	99.3	Total long-term debt liabilities	83.2
   		Total Liabilities	40.3+1.1+83.2
   		Stockholders' Equity (Total Equity)	78.3+ 47.7+5.5+99.3-40.3-1.1-83.2
   Total Assets	78.3+47.7+5.5+99.3	Total Liabilities and Stockholders' Equity	40.3+1.1+83.2+ 78.3+ 47.7+5.5+99.3-40.3-1.1-83.2

   What is the company's inventory turnover ratio?

   NOTE: Use the numbers as is. Use four decimals for your answers