Sparky's
Sparky's sells auto parts.Provided below is selected financial information from the company's 2012 annual report:
$\begin{array} { l r r }
\text { Fiscalyear end } & 2012 & 2011 \
\text { (amounts in thousands of dollars) } & & \
\text { Net sales } & \$ 125,410 & \$ 106,380 \
\text { Cast of Goods Sold } & - 104,090 & - 8 9 , 3 5 5 \
\text { Grass Prafit } & \$ 21,320 & \$ 17,021 \
\text { Irventory } & \$ 31,353 & \$ 30,850
\end{array}$
-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) $26,475
C) $40,000
D) $42,314

Question

Sparky's
Sparky's sells auto parts.Provided below is selected financial information from the company's 2012 annual report:
 $\begin{array} { l r r } 
\text { Fiscalyear end } & 2012 & 2011 \
\text { (amounts in thousands of dollars) } & & \
\text { Net sales } & \$ 125,410 & \$ 106,380 \
\text { Cast of Goods Sold } & - 104,090 & -  8 9 , 3 5 5  \
\text { Grass Prafit } & \$ 21,320 & \$ 17,021 \
\text { Irventory } & \$ 31,353 & \$ 30,850
\end{array}$
-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) $26,475
C) $40,000
D) $42,314

Quizplus · Accepted Answer

$\begin{array}{l}
\begin{array}{lll}
\text { Sparky's} \
\text { Selected Financial Statement data } \
\text { Fiscal year end} \
\text { (amounts in thousands of dollars)} \
\text { Net sales} \
\text { Cost of Goods Sold} \
\text { Gross profit} \
\text { Inventory} \
\text { Inventory Turnover} \
\end{array}
\begin{array}{lll}
\
\
\text { 2013forecast } & \underline{\mathbf{2 0 1 2}} & \text { 2011 } \
\
 \$ 156,763 & \$ 125,410 & \$ 106,380 \
-130,113 & -104,090 & -89,350 \
26,650 & 21,320 & 17,02 \
\$ 26,475 & \$ 31,353 & \$ 30,850\
4.5&3.35\
\end{array}
\end{array}$

Sparky's Sparky's Sells Auto Parts -Sparky's Forecasts That Sales Will Grow by 25% in 2013

Sparky's
Sparky's Sells Auto Parts -Sparky's Forecasts That Sales Will Grow by 25% in 2013