These Internet Exercises were created to expand your use of the web for research and analysis. These Exercises are not taken from the text, but are additional activities for your exploration. You can complete these activities here online, and e-mail your answers to your instructors.

Exercise 6-5 Financial Statement Analysis Activity

The inventory turnover ratio indicates how many times inventory turns over within the year. Compute the inventory turnover ratio for three firms in vastly different industries. Use your school library or go to the internet to find the most recent annual report for Edy's, Nike, and General Motors.

If you research the internet, go to: Edy's- www.edys.com , The Company , and finally Investor Information ; Nike - www.nike.com and type Annual Report in the search box; GM - www.gm.com , Investor Info formation , and Financial Data .

  1. Compute the inventory turnover ratio and average days to sell inventory for each company for the most recent year.

  2. Compare and contrast the ratios of the three companies.

  3. Are the ratios consistent with what you expected?





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