Glad Rags, Inc Required:
A $7 \%$ Per Year for Years

Glad Rags, Inc. sells women's clothes. Provided below is selected financial statement information:
$\begin{array}{llcc} \text {Glad Rags, Inc. } & \\ \text {Selected Financial Statement data } &\\ \text { Fiscal year end } &&2010&&2009\\ \text { (amounts in thousands of dollers) } &&\\ \text {Net sales } &&\$47,895&&\$42,589\\ \text { Cost of Goods Sold } &&\underline{(35,952)}&&\underline{(32,588)}\\ \text { Gross profit } &&\$11,943&&\$10,001\\\\ \text { Inventory } &&\$5,548&&\$4,948\\\end{array}$

Required:
a. Compute the inventory turnover ratio for 2010 .
b. Clothes, Inc. projects that saleswill grow at a compound rate of $7 \%$ per year for years $2011-2013$ and that the cost of goods sold to sales percentage will equal that realized in 2010. Compute the projected implied level of inventory at the end of 2011 to 2013.