A firm has sales of $710,000.The cost of goods sold is equal to 57 percent of sales.The firm has an average inventory of $23,940.How many days on average does it take the firm to sell its inventory?

Name: A firm has sales of $710,000.The cost of goods sold is equal to 57 percent of sales.The firm has an average inventory of $23,940.How many days on average does it take the firm to sell its inventory?
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

Inventory turnover = ($710,000 × .57)/$23,940 = 16.90Inventory period = 365/16.90 = 21.59 days

A Firm Has Sales of $710,000