Prince Co.'s inventory turnover ratio is 30.4. It's inventory conversion period is
A) 12 days.
B) 30.4 days.
C) 2.5 days.
D) There is not enough information.

Name: Prince Co.'s inventory turnover ratio is 30.4. It's inventory conversion period is A) 12 days. B) 30.4 days. C) 2.5 days. D) There is not enough information.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

The inventory conversion period is calculated as 365 days divided by the inventory turnover ratio. Therefore, 365 / 30.4 = 12 days.

Prince Co'S Inventory Turnover Ratio Is 30