Divergent Technologies reported the following information in their 20X2 annual report: (In millions) $$\begin{array} { | l | r | }
\hline \text { Net sales revenue } & \$ 15,540 \
\hline \text { Cost of sales } & 8,960 \
\hline \text { December 31, 20X2 inventory } & 1,650 \
\hline \text { December 31, 20X1 inventory } & 1,380 \
\hline
\end{array}$$
1. Determine the inventory turnover ratio
2. Determine the average days to sell inventory
3. Explain the meaning of each number.

Question

Divergent Technologies reported the following information in their 20X2 annual report: (In millions) $$\begin{array} { | l | r | } 
\hline \text { Net sales revenue } & \$ 15,540 \
\hline \text { Cost of sales } & 8,960 \
\hline \text { December 31, 20X2 inventory } & 1,650 \
\hline \text { December 31, 20X1 inventory } & 1,380 \
\hline
\end{array}$$
 1. Determine the inventory turnover ratio 
2. Determine the average days to sell inventory
 3. Explain the meaning of each number.

Quizplus · Accepted Answer

The Answer of Divergent Technologies reported the following information in their 20X2 annual report: (In millions) $$\begin{array} { | l | r | } 
\hline \text { Net sales revenue } & \$ 15,540 \
\hline \text { Cost of sales } & 8,960 \
\hline \text { December 31, 20X2 inventory } & 1,650 \
\hline \text { December 31, 20X1 inventory } & 1,380 \
\hline
\end{array}$$
 1. Determine the inventory turnover ratio 
2. Determine the average days to sell inventory
 3. Explain the meaning of each number.

Divergent Technologies Reported the Following Information in Their 20X2 Annual