Ottawa,Inc.provides the following data: For the year ending December 31,2019:
Calculate the days' sales in inventory for 2019.(Use 365 days for any calculations.Round any intermediate calculations and your final answer to two decimal places. )

Question

Ottawa,Inc.provides the following data:  For the year ending December 31,2019:
 Calculate the days' sales in inventory for 2019.(Use 365 days for any calculations.Round any intermediate calculations and your final answer to two decimal places. )

Quizplus · Accepted Answer

Inventory turnover ratio = Cost of Goods Sold / Average Merchandise Inventory =
$110,000 / [(55,000 + 25,000)/ 2] = $110,000 / $40,000 = 2.75 times
Days' sales in inventory = 365 / Inventory turnover ratio = 365 / 2.75 = 132.73