The Cape Corporation has ending inventory of $484,965, and cost of goods sold fo
ID: 2660458 • Letter: T
Question
The Cape Corporation has ending inventory of $484,965, and cost of goods sold for the year just ended was $4,170,699.
What is the days' sales in inventory? (Use 365 days a year. Round your answer to 2 decimal places. (e.g., 32.16))
How long on average did a unit of inventory sit on the shelf before it was sold? (Use 365 days a year. Round your answer to 2 decimal places. (e.g., 32.16))
The Cape Corporation has ending inventory of $484,965, and cost of goods sold for the year just ended was $4,170,699.
Explanation / Answer
Inventory Turnover = COst of goods sold/Avg. Inventory = 4170699/484965 = 8.6
Days sales of Inventory = 365 / Inventory turnover = 42.44 days
Inventory days on shelf = Days sales of Inv. = 42.44 days
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.