Zumiez Inc. is a leading action sports retailer, focusing on skateboarding, snowboarding, surfing,and BMX, selling some of its merchandise under the Blue Tomato brand. The company’s financialstatement notes reported that “Merchandise inventories may include items that have been writtendown to our best estimate of their net realizable value. Our decisions to write-down our merchandise inventories are based on their current rate of sale, the age of the inventory, the profitability ofthe inventory and other factors.” What ratios and financial measure(s) discussed in this chapter isthe company likely using to monitor . . .a. “. . . the current rate of sale”?b. “. . . the age of the inventory”?c. “. . . the profitability of the inventory”?
Zumiez Inc. is a leading action sports retailer, focusing on skateboarding, snowboarding, surfing,
and BMX, selling some of its merchandise under the Blue Tomato brand. The company’s financial
statement notes reported that “Merchandise inventories may include items that have been written
down to our best estimate of their net realizable value. Our decisions to write-down our merchandise inventories are based on their current rate of sale, the age of the inventory, the profitability of
the inventory and other factors.” What ratios and financial measure(s) discussed in this chapter is
the company likely using to monitor . . .
a. “. . . the current rate of sale”?
b. “. . . the age of the inventory”?
c. “. . . the profitability of the inventory”?
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