The Green Corporation has ending inventory of $463,000, and cost of goods sold f

Question

The Green Corporation has ending inventory of $463,000, and cost of goods sold for the year just ended was $4,329,050.

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.)

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.)

The Green Corporation has ending inventory of $463,000, and cost of goods sold for the year just ended was $4,329,050.

Explanation / Answer

Inventory turnover= Cost of Goods sold/Ending Inventory

=$4329050/$463000

=9.35

Days Sales in Inventory=(Inventory/Cost of Sales)*365

=($463000/$4329050)*365

=39.04

Inventory sat on the shelf for 39.04 days before it was sold.

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