Question

Bobaflex Corporation has ending inventory of $707,373 and cost of goods sold for the year just ended was $8,513,213. What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Inventory turnover times What is the days’ sales in inventory? (Do not round intermediate calculations and 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Days on the shelf days.

Answer 1

inventory turnover: 12.035

days in inventory 30 days

Step-by-step explanation:

cogs / average inventory = inventory turnover

8,513,213 / 707,373 = 12.03497023

during the year the inventory was sold 12 times

day's sales in inventory: 365/ inventory TO

365 / 12.035 = 30.3282

the inventory is keep on store 30 days on average until it is sold.