Which of the following is the correct days sales in inventory calculation?
A) 365 / Inventory turnover
B) Inventory turnover / 365
C) Inventory / Cost of goods sold
D) Cost of goods sold /Inventory

Name: Which of the following is the correct days sales in inventory calculation? A) 365 / Inventory turnover B) Inventory turnover / 365 C) Inventory / Cost of goods sold D) Cost of goods sold /Inventory
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Question

Quizplus · Accepted Answer

Days sales in inventory is calculated as 365 divided by the inventory turnover ratio, which is option A.

Which of the Following Is the Correct Days Sales in Inventory