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Polaris Industries Inc. is the biggest snowmobile manufacturer in the world. It reported the following amounts in its financial statements (in millions):
Required:
1. Calculate to one decimal place the inventory turnover ratio and average days to sell inventory for 2012, 2011, and 2010.
2. Comment on any trends, and compare the effectiveness of inventory managers at Polaris to inventory managers at its main competitor, Arctic Cat, where inventory turned over 5.4 times in 2012 (67.6 days to sell). Both companies use the same inventory costing method (FIFO).
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