Frosty's Frozen Food Inc.'s inventory balance is $1.22 million. Frosty's Cost of Good's Sold is $30.4 million. It's inventory conversion period

Name: Frosty's Frozen Food Inc.'s inventory balance is $1.22 million. Frosty's Cost of Good's Sold is $30.4 million. It's inventory conversion period
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Quizplus · Accepted Answer

The inventory conversion period is calculated as (Inventory / Cost of Goods Sold) * 365. For Frosty's, it is ($1.22 million / $30.4 million) * 365 = 14.65 days.