The Green Corporation has ending inventory of $481,040, and cost of goods sold f
ID: 2767160 • Letter: T
Question
The Green Corporation has ending inventory of $481,040, and cost of goods sold for the year just ended was $4,642,036.
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 $481,040, and cost of goods sold for the year just ended was $4,642,036.
Explanation / Answer
Inventory turnover = Cost of good sold / Inventory
= $4,642,036/ $481,040
= 9.65 times
Days' sales in inventory = 365/Inventory turnover
= 365/9.65
= 38 days
Days on shelf in inventory = 365/Inventory turnover
= 365/9.65
= 38 days
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