Question 5 (of 19) value 0.57 points M7-13 Calculating the Inventory Turnover Ra

Question

Question 5 (of 19) value 0.57 points M7-13 Calculating the Inventory Turnover Ratio and Days to Sell LO 7-5] Complete the following table. (Use 365 days in a year. Round the inventory turnover ratio to one decimal place before computing days to sell. Round days to sell to one decimal place.) CGS El Days to Sell 1,200 2,000 1,800 1,200 $ 300 $ 290 10.0 50 20.3 References eBook & Resources Worksheet Difficuity: 1 Easy Leaming Objective: 07-05 Evaluate inventory M7-13 Calculating the inventory Turnover Ratio and Days to Sell [LO management by computing and interpreting the 7-51 Check my.work O Type here to search esc 8

Explanation / Answer

EI = BI + Purchase - CGS

Inventory Turnover Ratio = CGS / Average Inventory

Average Inventory = (BI + EI)/2

Days to Sell = (Average Inventory * 365) / CGS

Case BI Purchase CGS EI Inventory Turnover Ratio Days to Sell a $300 $1200 $1200 $300 4.0 91.25 b 290 1820 2000 110 10.0 36.5 c 150 1700 1800 50 18.0 20.3

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