Wagon Department Store had net credit sales of $16,000,000 and cost of goods sold of $15,000,000 for the year.The average inventory for the year amounted to $2,000,000.
-The average number of days in inventory during the year was

Question

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold / Average inventory= $15,000,000 / $2,000,000= 7.5 times per yearAverage number of days in inventory = 365 days / Inventory turnover= 365 days / 7.5 times per year= 48.7 days

Wagon Department Store Had Net Credit Sales of $16,000,000 and Cost