Holding Co.had cost of goods sold of $600,000.Its ending inventory was $200,000.Therefore,its days' sales in inventory was 90 days.

Name: Holding Co.had cost of goods sold of $600,000.Its ending inventory was $200,000.Therefore,its days' sales in inventory was 90 days.
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

Days' sales in inventory is calculated as (Ending Inventory / Cost of Goods Sold) * 365. Without knowing the beginning inventory or additional details, we cannot directly conclude that the days' sales in inventory was 90 days.