Inventory Turnover Formula:

Cost of Sales Average Inventory

Where Average Inventory is: (Opening Inventory + Closing Inventory)/2

2011 1,965,363 (94,690 + 35,117)/2 30 times

2010 672,160 (35,117+30,365)/2 21 times

Inventory Days Formula: 360 days Inventory turnover

2011 360 days 30

2010 360 days 21

12 days

17 days

Inventory Valuation Method: FIFO (See Note 3c of F/S)

Inventory was reported at cost (There were no write-downs)

Inventory Turnover Formula:

.

Cost of Sales Average Inventory

Where Average Inventory is: (Opening Inventory + Closing Inventory)/2

2011 70,692 (7,766 + 6,976)/2 10 times

2010 53,603 (6,976 + 6,257)/2 8 times

Inventory Days Formula: 360 days Inventory turnover

2011

2010

360 days 10 36 days

360 days 8 45 days

Inventory Valuation Method: Weighted Average (See Note 2.7 of F/S)

Inventory was reported at Net Realizable Value (See Note 10)

Inventory Turnover Formula:

.

Cost of Sales Average Inventory

Where Average Inventory is: (Opening Inventory + Closing Inventory)/2

2011 616,463 (72,806 + 78,356)/2 8 times

2010 925,907 (78,356 + 71,505)/2 12 times

Inventory Days Formula: 360 days Inventory turnover

2011

2010

360 days 8 45 days

360 days 12 30 days

Inventory Valuation Method: Weighted Average (See Note 3i of F/S)

Inventory was reported at Cost (No write-downs in the year)

Inventory Turnover Formula:

.

Cost of Sales Average Inventory

Where Average Inventory is: (Opening Inventory + Closing Inventory)/2

2011 189,399 (39,015 + 27,441)/2 5 times

2010 163,298 (27,441 + 23,901)/2 6 times

Inventory Days Formula: 360 days Inventory turnover

2011

2010

360 days 5 72 days

360 days 6 60 days

Inventory Valuation Method: Weighted Average (See Note 3f of F/S)

Inventory was reported at Net Realizable Value (See Note 8)

Graphical representation: Inventory Turnover

35 30 25 20 15 10 2011 2010

5
CanWel Building Materials Group Hardwood distribution Inc. Luxor Industrial Corporation PFB Corporation

Industry average: 6 times

80

70

60

50

40

2011 2010

30

20

10

0 CanWel Building Materials Group Hardwood distribution Inc. Luxor Industrial Corporation PFB Corporation