Toys "R" Ltd. had cost of goods sold of $6,000 million, ending inventory of $2,500million, and average inventory turnover of $2,000 million. The days' sales in inventory is:

Name: Toys "R" Ltd. had cost of goods sold of $6,000 million, ending inventory of $2,500million, and average inventory turnover of $2,000 million. The days' sales in inventory is:
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Question

Quizplus · Accepted Answer

Days' sales in inventory is calculated as (Ending Inventory / Cost of Goods Sold) * 365. Using the given values: (2,500 / 6,000) * 365 = 152.1 days.