Question - Sparky's Selected Financial Statement data
(amounts in thousands of dollars)
Fiscal year end 2012 2011
Net sales $125,410 $106,380
Cost of Goods Sold -104,090 -89,359
Gross Profit $21,320 $17,021
Inventory $31,353 $30,850
Using Sparky's financial information what is the company's inventory turnover ratio for 2012?
a. 0.69
b. 1.00
c. 3.35
d. 4.03
Sparky's forecasts that sales will grow by 25% in 2013 and that its cost of goods sold to sales ratio will be the same in 2013 as it was in 2012. Given the information provided about Sparky, what is the company's 2013 projected cost of goods sold?
a. $130,110
b. $104,090
c. $162,424
d. $156,763
Sparky's forecasts that sales will grow by 25% in 2013 and that its cost of goods sold to sales ratio will be the same in 2013 as it was in 2012. If these assumptions prove correct and Sparky's inventory turnover ratio for 2013 is 4.5 what will be the level of inventory at the end of 2013?
a. $31,353
b. $26,474
c. $40,000
d. $42,314