At December 31, 2006, the following information (in thousands) was available for

Question

At December 31, 2006, the following information (in thousands) was available for sunglasses manufacturer Oakley, Inc.: ending inventory $155,377; beginning inventory $119,035; cost of goods sold $349,114; and sales revenue $761,865. Calculate the inventory turnover ratio and days in inventory for Oakley, Inc. (Round the inventory turnover ratio to 3 decimal places, e.g. 1.205 and the days in inventory to 0 decimal places, e.g. 120.) Inventory turnover ratio................. times. Days in inventory .............. days.

Explanation / Answer

ending inventory $155,377; beginning inventory $119,035; cost of goods sold $349,114; and sales revenue $761,865. Inventory turnover ratio = COGS/Avge Inv = 349114/((155377+119035)/2) = 2.54 Days in inventory for Oakley = Avge In/(COGS/days) = 365/2.54 = 143.70 or 144 days

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