Cutting Edge Technologies Reported the Following Information in Their 2010

question 102

Essay

Cutting Edge Technologies reported the following information in their 2010 annual report:
$\begin{array}{lr}& \text {In millions}\\\text { Net sales revenue } & \$ 18,860 \\\text { Cost of sales } & 11,010 \\\text { December } 31,2010 \text { inventory } & 1,840 \\\text { December } 31,2011 \text { inventory } & 1,550\end{array}$ 1.Determine the inventory turnover ratio.
2.Determine the average days to sell inventory.
3.Explain the meaning of each number.

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Definitions:

Short-term Capital Gain

A profit realized from the sale of an asset held for less than a year, often taxed at a different rate than long-term capital gains.

Long-term Capital Gain

Profit from the sale of an asset held for more than a year, typically subject to a lower tax rate.

Mutual Fund Prospectus

A legal document provided by mutual funds to potential investors, detailing the fund's objectives, risks, performance, and expenses.

Front-end Loads

Charges paid by investors at the time of purchasing a mutual fund.