Use the information from MWW’s annual financial statements to calculate the inventory turnover ratio for MWW for the years ended January 27, 2001 and January 29, 2000. Use the quarterly information below to calculate the inventory turnover ratios for 2001 and 2000. Why are the ratios different when the quarterly data are used? Which calculation gives a better indication of the inventory turnover?

Explain. Remember that the cost of sales is only for the quarter in question, not for the year to date.

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Fiscal 2001 Inventory at Cost of sales Inventory at Fiscal 2000 Cost of the end of during the end of sales during 1st Quarter $ 94,772 $36,730 $ 89,357 $33,386 2nd Quarter 89,915 45,081 83,300 37,578 3rd Quarter 113,720 51,567 106,994 45,388 4th Quarter 84,483 80,983 81,468 70,371