$$\begin{array}{l}
\begin{array} {lll }
&£\
\text {Opening irventory}&5,400\
\text {Trade payales}&9,000\
\text {Purchases (all an credit)}&45,000\
\text {Glasing irventary}&7,200\
\end{array}
\end{array}$$ Based on the above figures, what are the inventory days?

Question

$$\begin{array}{l}
\begin{array} {lll }
&£\ 
\text {Opening irventory}&5,400\
\text {Trade payales}&9,000\
\text {Purchases (all an credit)}&45,000\
\text {Glasing irventary}&7,200\
\end{array}
\end{array}$$ Based on the above figures, what are the inventory days?

Quizplus · Accepted Answer

Inventory days can be calculated using the formula: (Average Inventory / Cost of Goods Sold) * 365. Average Inventory = (Opening Inventory + Closing Inventory) / 2 = (5,400 + 7,200) / 2 = 6,300. Cost of Goods Sold = Opening Inventory + Purchases - Closing Inventory = 5,400 + 45,000 - 7,200 = 43,200. Inventory Days = (6,300 / 43,200) * 365 = 60.83 days.

Based on the Above Figures, What Are the Inventory Days