Imagine you are reviewing inventory balances vs last year. What would you expect to happen to ending inventory, if sales were lower than last year, and receipts were higher than last year?

"In this example, I would expect inventory to grow at a higher rate than it did last year. Higher receipts means more product coming into inventory, and lower sales means fewer products leaving inventory. This would be a concern to me, as higher inventory balances would indicate a higher obsolescence risk."