Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $170,000; beginning inventory $117,000; cost of goods sold $358,750 and sales revenue $770,000. Calculate the inventory turnover for Oakley, Inc. (Round inventory turnover to 2 decimal places, e.g. 5.12.) Inventory turnover enter inventory turnover ratio rounded to 2 decimal places times eTextbook and Media List of Accounts Calculate the days in inventory for Oakley, Inc. (Round days in inventory to 0 decimal places, e.g. 125.) Days in inventory enter days in inventory rounded to the nearest whole days

Answer :

tanseershar

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

TomShelby

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

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