Nico Corporation has cost of goods sold of $300,000 and inventory of $30,000, then the inventory turnover is ________ and the average age of inventory is ________.

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold / Inventory = $300,000 / $30,000 = 10. The average age of inventory is calculated as 365 / Inventory Turnover = 365 / 10 = 36.5 days.

Nico Corporation Has Cost of Goods Sold of $300,000 and Inventory