Tixonic Lab's balance is $1.22 million.Tixonic's cost of goods sold is $30.4 million.Its inventory conversion period is [blank].

Question

Quizplus · Accepted Answer

Inventory conversion period = (Cost of goods sold / Average inventory) * 365 daysAverage inventory = (Beginning inventory + Ending inventory) / 2We don't have the beginning or ending inventory, so we can't calculate the average inventory. However, we can use the cost of goods sold and the inventory conversion period to estimate the average inventory.Inventory conversion period = 14.65 daysCost of goods sold = $30.4 millionAverage inventory = (Cost of goods sold / Inventory conversion period) * 365 daysAverage inventory = ($30.4 million / 14.65 days) * 365 daysAverage inventory = $7.3 millionTherefore, the inventory conversion period is 14.65 days.

Tixonic Lab's Balance Is $1