The inventory turnover of Long Corporation is 16×, and its closing inventory is $20,000. Assuming there are 360 days in a year, compute the company's inventory conversion period. (Give answer to one decimal place.)

Question

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The inventory conversion period is calculated as (360 / Inventory Turnover). Given an inventory turnover of 16×, the inventory conversion period is (360 / 16) = 22.5 days.

The Inventory Turnover of Long Corporation Is 16×, and Its