Wang Company's average inventory for 2019 was $75,000 and its inventory turnover for 2019 was 6.0; Wang's 2019 days' sales in inventory (computed to one decimal place) is:
A) 12.7 days
B) 60.8 days
C) 68.5 days
D) 53.8 days
E) None of the above

Question

Quizplus · Accepted Answer

The days' sales in inventory can be calculated by dividing 365 days by the inventory turnover ratio. For Wang Company, this is 365 / 6.0 = 60.8 days.

Wang Company's Average Inventory for 2019 Was $75,000 and Its