Response to the following problem:
Access the 2009 annual 10-K report for Polaris Industries (Ticker PII), filed on March 1, 2010, from the EDGAR filings at www.sec.gov.
Required:
1. What products are manufactured by Polaris?
2. What inventory method does Polaris use?
3. Compute its gross margin and gross margin ratio for the 2009 calendar year. Comment on your computations-assume an industry average of 27% for the gross margin ratio.
4. Compute its inventory turnover and days' sales in inventory for the year ended December 31, 2009. Comment on your computations-assume an industry average of 5.9 for inventory turnover and 55 for days' sales in inventory.