Tops had cost of goods sold of $8,321 million and its ending inventory was $2,027 million. Therefore its days' sales in inventory equals 89 days.

Question

Quizplus · Accepted Answer

Days' sales in inventory is calculated as (ending inventory / cost of goods sold) * 365 days.

Plugging in the numbers from the question:

(days' sales in inventory) = ($2,027 million / $8,321 million) * 365 days

(days' sales in inventory) = 0.2439 * 365 days

(days' sales in inventory) = 89 days (rounded to the nearest day)

Therefore, the answer is true.

Tops Had Cost of Goods Sold of $8,321 Million and Its