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Extreme Sports Company and All Sports Corporation
Below Is Financial

Question 40

Multiple Choice

Extreme Sports Company and All Sports Corporation
Below is financial information for two sporting goods retailers.Extreme Sports Company operates a retail business and franchising business.At the end 2011, Extreme Sports had 263 Company-owned and 120 franchise-operated retail stores.Extreme's stores are located in suburban, strip mall and regional mall locations, the company operates in 32 states.All Sports Corporation sells sporting goods and related products at over 2,500 Company-operated retail stores.
Selected Data for All Sports and Extreme Sports
(amounts in millions)
 All Sports  Extreme Sports  Sales $5,320$1,344 Cost of Goods Sold 3,897887 Interest Expense 13843 Net Income 212236 Average Inventory 998130 Average Fixed Assets 1,163662 Average Total Assets 2,47240%\begin{array}{lrr} & \text { All Sports } & \text { Extreme Sports } \\\text { Sales } & \$ 5,320 & \$ 1,344 \\\text { Cost of Goods Sold } & 3,897 & 887 \\\text { Interest Expense } & 138 & 43 \\\text { Net Income } & 212 & 236 \\\text { Average Inventory } & 998 & 130 \\\text { Average Fixed Assets } & 1,163 & 662 \\\text { Average Total Assets } & 2,472 & 40 \%\end{array}

-Refer to the information for Extreme Sports Company and All Sports Corporation.
Calculate All Sports' inventory turnover ratio.


A) 5.3
B) 1.2
C) 3.9
D) .256

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