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
B
Sparky's
Selected Financial Statement data
Fiscal year end 2013 forecast 2012 2011
(amounts in thousands of dollars)
Net sales $156,763 $125,410 $106,380
Cost of Goods Sold -130,113 -104,090 -89,359
Gross profit 26,650 21,320 17,021
Inventory $26,475 $31,353 $30,850
Inventory Turnover 4.5 3.35
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