Question

wagon department store had a net credit sales of 16000000 and cost of goods sold of 15000000 for the year the average inventory for the year amounted to 2000000 the average number of days in inventory during the year was?

Answer 1

=48.7 days

Step-by-step explanation:

Days in inventory = average inventory/ COGS x 365

In the case of the wagon department:

Average inventory = 2,000,000

Cost of good sold= 15,000,000

Days in inventory= 2,000,000/ 15,000,000 x 365

=0.1333 x 365

=48.7 days