Support My Subscriptions Madison Shae McClellan Quantifying the Effect of Inventory Write-offs on Ratios Under Armour reported the following in its 2018 Form 10-K Under Armour's income statement reported 2018 cost of goods sold of $2,852.714 thousand its balance sheet reported inventories of $1427,294 thousand in 2018 and $1,621,967 thousand in 2017 Restructuring Plans, As previously announced, our Board of Directors approved restructuring plans designed to more closely align our financial resources with the critical priorities of our business and optimize operations. We recognized approximately $203.9 milion of pre-tax charges in connection with our restructuring plan. The costs incurred during the year ended December 31, 2018 include the following Costs recorded in cost of goods sold (5 thousands) 2018 Inventory writeolls 1.2001 Total cost recorded in cost of goods sold 120.000 a. What effect did the 2018 inventory write-off have on pretax income during 2018? Note: Use a negative sign with your answer if pre-tax income decreased as a result of the write of 520,801) thousand b. Calculate inventory turnover and days inventory outstanding for 2018 Note: Round your answers to one decimal place (for example, enter 6.8 for 6.77555). Inventory turnover 26 times Note: Do not round until your final answer, round your final answer to the nearest whole day. Days inventory Outstanding 100 x days Days inventory outstanding 140 x days cit Under Armour had not written off inventory in 2018, what would it have reported for cost of goods sold in 2018? 5 2,831913 thousand d. If Under Armour had not written off inventory in 2018, what would have been the inventory balances in 2018 and 2017 2018 inventory balance $ 1,040,297 x thousand 2017 inventory balances 1,158,543 x thousand e. Use the adjusted cost of goods sold and inventory balances to recalculate inventory turnover and days inventory outstanding Did the inventory write-off make a significant difference? Note: Round your answers to one decimal place (for example, enter 6.8 for 6.77555) Inventory turnover 26 x times Note: Do not round until your final answer, round your final answer to the nearest whole day. Days Inventory outstanding 142 * days Check Type here to search