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

question 31

Multiple Choice

Sparky's sells auto parts. Provided below is selected financial information from the company's 2012 annual report:
$\begin{array}{lll}\underline{\text { Sparky's Selected Fimancial Statementdata }} \\\text { Fiscal year end } & \mathbf{2 0 1 2} & \mathbf{2 0 1 1} \\\text { (amounts in thousands of dollass) } & \\\text { Net sales } & \$ 125,410 & \$ 106,380 \\\text { Cost of GoodsSold } &-104,090 & -89,359 \\\text { GrossProfit } & \$ 21,320 & \$ 17,021\\\\\text { Inventory}& \$ 31,353 & \$ 30,850\end{array}$
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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) $38,320
• C) $40,000
• D) $42,314

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Definitions:

Brain's Primary Functions

The main tasks carried out by the brain, including regulating vital bodily functions, processing sensory information, and overseeing thought, emotion, and memory.

Dorsal

Pertaining to the back or upper side of an organism or structure, opposite of ventral, often used in anatomical descriptions.

Ventral Fibers

Nerve fibers located on the front part of the body, often associated with the transmission of sensory and motor information.

Sympathetic

Refers to the part of the autonomic nervous system that typically prepares the body for action and stress responses, often described as the "fight or flight" system.