Answer :
Answer:
1.Inventory Turnover ratio=Cost of Goods Sold/Average Inventory
2.Days in Inventory=(Average Inventory/Cost of goods sold)*365
Explanation:
1.Inventory turnover=$358,750/$(*143,500)=2.50
*Average Inventory=(117,000+170,000)/2=$143,500
2.Days in Inventory=(*143,500/358,750)*365=146 days
Answer:
Inventory TO 2.5
Days on Inventory 146
Explanation:
[tex]\frac{COGS}{Average Inventory} = $Inventory Turnover[/tex]
where:
[tex]$Average Inventory=(Beginning Inventory + Ending Inventory)/2[/tex]
COGS 358,750
beginning 117,000
ending 170,000
[tex]$Average Inventory=117000 + 170000)/2[/tex]
Inventory 143500
[tex]\frac{358750}{143500} = $Inventory Turnover[/tex]
Inventory TO 2.5
[tex]\frac{365}{Inventory TO} = $Days on Inventory[/tex]
[tex]\frac{365}{2.5} = $Days on Inventory[/tex]
Days on Inventory 146