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Sandhill Electronics has enjoyed tremendous sales growth during the last $10$ years. However, even though sales have steadily

increased, the company's CEO, Dorothy Taylor, is concerned about certain aspects of its performance. She has called a meeting with

the corporate controller and the vice presidents of finance, operations, sales, and marketing to discuss the company's performance.

Dorothy begins the meeting by making the following observations:

We have been forced to take significant write$-$downs on inventory during each of the last three years because of obsolescence. In

addition, inventory storage costs have soared. We rent four additional warehouses to store our increasingly diverse inventory. Five

years ago inventory represented only $20\%$ of the value of our total assets. It now exceeds $35\%.$ Yet, even with all of this inventory,

"stockouts" $($measured by complaints by customers that the desired product is not available$)$ have increased by $40\%$ during the last

three years. And worse yet, it seems that we constantly must discount merchandise that we have too much of$.$

Dorothy asks the group to review the following data and make suggestions as to how the company's performance might be improved.

$($in millions$)$

Inventory

Compute the current ratio, gross profit rate, profit margin, inventory turnover, and days in inventory for $2025,2026,$ and $2027.($Round

current ratios to $2$ decimal places, e$.$g$.15\mathrm{.}21,$ and all other answers to $1$ decimal place, e$.$g$.15\mathrm{.}2.$ Use $365$ days for calculation.$)$

Current Ratio

Gross Profit Rate

Profit Margin

Inventory Turnover

Days in Inventory

:$1$

$\%$

$\%$

times

days

:$1$

$\%$

$\%$

times

days

:$1$

$\%$

$\%$

tin

da

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