Required information P7-7 (Algo) Evaluating the Effects of Manufacturing Changes on Inventory Turnover Ratio and Cash Flows from Operating Activities LO7-5, 7-7 [The following information applies to the questions displayed below] Mears and Company has been operating for five years as an electronics component manufacturer specializing in cellular phone components. During this period, it has experienced rapid growth in sales revenue and in inventory. Mr. Mears and his associates have hired you as Mears's first corporate controller. You have put into place new purchasing and manufacturing procedures that are expected to reduce inventories by approximately one-third by year-end. You have gathered the following data related to the changes: Inventory Cost of goods sold (dollars in thousands) Beginning of Year 597,700 End of Year (projected) 391,310 Current Year (projected) $ 7,028,984 P7-7 Part 1 rint Required: 1. Compute the inventory turnover ratio based on two different assumptions: (Round your answers to 1 decimal place.) a. Those presented in the above table (a decrease in the balance in inventory). b. No change from the beginning-of-the-year inventory balance. Inventory turnover ratio Projected Change No Change from Beginning of Year