Sparky's
Sparky's Sells Auto Parts -Sparky's Forecasts That Sales Will Grow by 25% in 2013

question 36

Multiple Choice

Sparky's
Sparky's sells auto parts.Provided below is selected financial information from the company's 2012 annual report:
$\begin{array} { l r r } \text { Fiscalyear end } & 2012 & 2011 \\\text { (amounts in thousands of dollars) } & & \\\text { Net sales } & \$ 125,410 & \$ 106,380 \\\text { Cast of Goods Sold } & - 104,090 & - 8 9 , 3 5 5 \\\text { Grass Prafit } & \$ 21,320 & \$ 17,021 \\\text { Irventory } & \$ 31,353 & \$ 30,850\end{array}$
-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

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Definitions:

Organizational Context

The environment or setting within which an organization operates, including cultural, social, and operational factors that influence its functioning and strategy.

Expert Power

The influence someone has over others due to their specialized knowledge or skills.

Organize Information

The act of arranging data or details in a structured and coherent manner to facilitate better understanding and decision-making.

Personal Reward Power

The ability of an individual to influence others through the provision or withdrawal of rewards.