The Green Corporation has ending inventory of $483,500, and cost of goods sold f

Question

The Green Corporation has ending inventory of $483,500, and cost of goods sold for the year just ended was $3,693,940.

1. is the inventory turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

2. What is the days' sales in inventory? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

3. How long on average did a unit of inventory sit on the shelf before it was sold? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

1. is the inventory turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

2. What is the days' sales in inventory? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

3. How long on average did a unit of inventory sit on the shelf before it was sold? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Explanation / Answer

Answer:1 Inventory turnover=Cost of goods sold/Inventory

=$3693940/$483,500

=7.64 times

Answer:2 Days' sales in inventory=365 days/Inventory turnover ratio

=365 days/7.64 times

=47.77 days

Answer:3 On average, a unit of inventory sit on the shelf 47.77 days before it was sold.

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