King Co.'s inventory turnover ratio is 12. It's inventory conversion period is

Name: King Co.'s inventory turnover ratio is 12. It's inventory conversion period is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inventory turnover ratio = Cost of goods sold / Average inventory

12 = Cost of goods sold / Average inventory

Average inventory = Cost of goods sold / 12

Inventory conversion period = (Average inventory / Cost of goods sold) x 365

Inventory conversion period = (Cost of goods sold / 12 / Cost of goods sold) x 365 = 30.4 days

King Co'S Inventory Turnover Ratio Is 12