Dogz reports total revenue of $47,561,cost of goods sold of $32,856 and net receivables of $19,595.Their property,plant and equipment is $19,813 and they have $16,240 of inventory.If they operate 300 days a year,how long does the average item stay in inventory?

Question

Quizplus · Accepted Answer

The average inventory period is calculated using the formula: (Inventory / Cost of Goods Sold) * 365. Plugging in the numbers: ($16,240 / $32,856) * 365 = 180.5 days. However, since the company operates 300 days a year, we adjust the formula to: ($16,240 / $32,856) * 300 = 148 days.

Dogz Reports Total Revenue of $47,561,cost of Goods Sold of $32,856