"Toys 4 U" had cost of goods sold in 2012 of $8,191 million and $7,710 million in 2011.Their merchandise inventory in 2012 was $1,902 million and $2,464 million in 2011.How long was "Toys 4 U" average days to sell their inventory in 20112?

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Quizplus · Accepted Answer

To find the average days to sell inventory, use the formula: (Average Inventory / Cost of Goods Sold) * 365. Average Inventory = (2011 Inventory + 2012 Inventory) / 2 = ($2,464M + $1,902M) / 2 = $2,183M. Days to sell = ($2,183M / $8,191M) * 365 = 97.3 days.

"Toys 4 U" Had Cost of Goods Sold in 2012