Direct Sales, Inc. had cost of goods sold of $420,000, beginning inventory of $67,000, and ending inventory of $81,000. The days' sales in inventory equals:

Name: Direct Sales, Inc. had cost of goods sold of $420,000, beginning inventory of $67,000, and ending inventory of $81,000. The days' sales in inventory equals:
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Question

Quizplus · Accepted Answer

Days' sales in inventory is calculated as (Ending Inventory / Cost of Goods Sold) * 365. Using the given values: (81,000 / 420,000) * 365 = 70.4 days.