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	211.5
   Cost of Sales	159.7
   Gross Profit	211.5-159.7
   Selling and Administrative Expenses	19.5
   Research and Development	6.4
   Depreciation and Amortization	4.4
   Other Income	4.8
   EBIT	211.5-159.7-19.5-6.4-4.4+4.8
   Interest Expense	6.3
   Pretax Income	211.5-159.7-19.5-6.4-4.4+4.8-6.3
   Taxes	( 211.5-159.7-19.5-6.4-4.4+4.8-6.3 )*0.30
   Net Income	( 211.5-159.7-19.5-6.4-4.4+4.8-6.3 )*0.70
   Balance Sheet
   Assets		Liabilities
   Cash	75.4	Accounts Payable	46.6
   Accounts Receivable	47.4	Notes Payable/Short term debt	1.1
   Inventories	4.8
   Total Current Assets	75.4+47.4+4.8	Total Current Liabilities	46.6+1.1
   Net property, plant and equipment	101.9	Long-term debt	84.7
   Total long-term assets	101.9	Total long-term debt liabilities	84.7
   		Total Liabilities	46.6+1.1+84.7
   		Stockholders' Equity (Total Equity)	75.4+ 47.4+4.8+101.9-46.6-1.1-84.7
   Total Assets	75.4+47.4+4.8+101.9	Total Liabilities and Stockholders' Equity	46.6+1.1+84.7+ 75.4+ 47.4+4.8+101.9-46.6-1.1-84.7

   What is the company's inventory turnover ratio?

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