Extreme Sports Company and All Sports Corporation
Below Is Financial

question 91

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)
$\begin{array}{lrr} & \text { All Sports } & \text { Extreme Sports } \\\text { Sales } & \$ 5,320 & \$ 1,344 \\\text { Cost of Goods Sold } & 3,897 & 887 \\\text { Interest Expense } & 138 & 43 \\\text { Net Income } & 212 & 236 \\\text { Average Inventory } & 998 & 130 \\\text { Average Fixed Assets } & 1,163 & 662 \\\text { Average Total Assets } & 2,472 & 40 \%\end{array}$

-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

---

Definitions:

Inoculation Theory

A theory suggesting that exposure to a weakened form of an argument strengthens people's ability to refute stronger, future arguments.

Cognitive Dissonance

A psychological state in which an individual experiences discomfort or conflict due to holding contradictory beliefs, attitudes, or values at the same time.

Social Judgment

The process by which individuals evaluate and form opinions about other people and social situations.

Rejection-Then-Retreat

A persuasion technique where a larger request is made knowing it will be rejected in order to increase the likelihood that a smaller subsequent request will be accepted.