The Quarterly Ending Inventory Numbers for Oakville Inc Are as Follows

Essay

The quarterly ending inventory numbers for Oakville Inc are as follows: $$\begin{array} { l r r r } \text { April 30 } & \text { July 31 } & \text { October 31 } & \text { January 31, 2014 } \\\$ 100,000 & \$ 175,000 & \$ 225,000 & \$ 125,000\end{array}$$ Their cost of goods sold for the fiscal year ending January 31, 2014, was $812,500, ending inventory on January
31, 2013, was $115,000
Required:
A) Calculate Oakville's inventory turnover and average number of days' inventory using opening and closing inventory figures.
B) Calculate Oakville's inventory turnover and average number of days' inventory using an average of the quarterly ending inventory figures.
C) Which one better represents Oakville's inventory management? Why? D) When is Oakville's peak sales period during the year?