If the cost of goods sold is $250,000 and the inventory turnover is 2.8, then the average inventory and days sales in inventory are:

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Quizplus · Accepted Answer

The average inventory is calculated by dividing the cost of goods sold by the inventory turnover, which is $250,000 / 2.8 = $89,286. Days sales in inventory is calculated by dividing 365 days by the inventory turnover, which is 365 / 2.8 = 130 days.

If the Cost of Goods Sold Is $250,000 and the Inventory