Using the information from the BG Inc. financial statements, calculate the firms inventory turnover.

BG Inc. Income Statement for the Year Ending December 31, 2012 ($ millions)

Sales $1200

Cost of goods sold 920

Gross profits 280

Operating expenses:

Selling expenses $40

General & Administrative expenses 30

Depreciation 60

Total operating expenses 130

EBIT 150

Interest 30

Earnings before taxes 120

Income taxes 36

Net income $84

Number of common shares outstanding (millions) 40

Market price per share $64

Cash dividends $20 million

Book value per share $20.30

BG Inc. Balance Sheet ($ millions) December 31, 2012

ASSETS

Cash $ 40

Accounts receivable 72

Inventories 168

Other current assets 6

Total current assets $286

Gross fixed assets $820

Accumulate depreciation (230)

Net fixed assets $590

Total assets $876

LIABILITIES and EQUITY

Accounts payable $ 84

Accrued expenses 20

Short-term notes 24

Total current liabilities $128

Long-term debt $342

Total liabilities $470

Equity

Common stockholders equity

Common stock par value $ 22

Paid-in capital 150

Retained earning 234

Total common equity $406

Total liabilities and equity $876