The Green Corporation has ending inventory of $482,700, and cost of goods sold f

Question

The Green Corporation has ending inventory of $482,700, and cost of goods sold for the year just ended was $3,934,005 What is the inventory turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.) Inventory turnover times 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.) Days' sales in inventory days 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.) Days on shelf in inventory days

Explanation / Answer

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

= 3934005 / 482700

= 8.15 times

Days Sales in inventory = 365 / inventory Turnover Ratio

= 365 / 8.15

= 44.79 days

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