Toys "R" Us had cost of goods sold of $8,321 million and ending inventory of $2,027 million.Based on this,its days' sales in inventory is equal to 89 days.

Question

Quizplus · Accepted Answer

Days' sales in inventory = (Ending Inventory / Cost of Goods Sold) x 365
Days' sales in inventory = (2,027 / 8,321) x 365
Days' sales in inventory = 0.2438 x 365
Days' sales in inventory = 89.03 rounded to nearest whole number
Therefore, Toys "R" Us days' sales in inventory is 89 days.

Toys "R" Us Had Cost of Goods Sold of $8,321