Frosty's Frozen Food Inc.'s inventory balance is $1.22 million.Frosty's Cost of Good's Sold is $30.4 million.Its inventory conversion period is

Name: Frosty's Frozen Food Inc.'s inventory balance is $1.22 million.Frosty's Cost of Good's Sold is $30.4 million.Its inventory conversion period is
Brand: Quizplus
Rating: 4.8 (54 reviews)

Question

Quizplus · Accepted Answer

The inventory conversion period is calculated as (Inventory / Cost of Goods Sold) * 365. For Frosty's, it is ($1.22 million / $30.4 million) * 365 = 14.65 days.