Thompson & Silva Incorporated is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions):

	2017	2018
Net Sales Revenue	$ 4,700	$ 4,160
Cost of Goods Sold	4,020	3,550
Average Inventory	470	420

Required:

1. 1-a. Calculate the inventory turnover ratio for 2018 and 2017.
2. 1-b. Calculate the average days to sell inventory for 2018 and 2017.
3. 2. Did inventory turnover at Thompson & Silva improve or decline in 2018?
4. 3. Calculate the 2018 gross profit percentage.
5. 4. The main competitor for Thompson & Silva is Arctic Cat. Prior to being acquired by Textron, Incorporated, Arctic Cat reported its inventory turnover was 4.4 and its gross profit percentage was 5.0 percent. Why was Arctic Cat more likely than Thompson & Silva to require a write-down for LCM/NRV?