Use the following information to answer questions
Joliet's 2009 and 2010 financial statements included the following data:

Assume a 360-day year for all calculations.
-What is average age of Joliet's inventory for 2010?

Question

Use the following information to answer questions 
Joliet's 2009 and 2010 financial statements included the following data:
  
Assume a 360-day year for all calculations.
-What is average age of Joliet's inventory for 2010?

Quizplus · Accepted Answer

The average age of inventory is calculated using the formula: (365 days / Inventory Turnover Ratio). If the Inventory Turnover Ratio for Joliet in 2010 is provided or can be calculated from given data (such as Cost of Goods Sold and average inventory), this formula will yield the average age of Joliet's inventory for that year. Without specific numbers, this is a general approach to find the answer based on typical financial analysis methods.

Use the Following Information to Answer Questions