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What will be the level of inventory at the end

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Reference no: EM132467747

Sparky's sells auto parts. Provided below is selected ?nancial information from the company's 2012 annual report: 

Sparky sells Selected Financial Statement data Fiscal year end                       2012          2011

(amounts in thousands of dollars) Net sales                                                $125,410      $106,380

Cost of Goods Sold                                                                                -104,090         -89,359

Gross Pro?t                                                                                            $21,320            $17,021

Inventory                                                                                              $31,353              $30,850

Question1: 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.$42,314

c. $26,475

 d. $40,000

Reference no: EM132467747

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