Final answer:
Tater and Pepper Corp.'s inventory stayed on the premises for approximately 88.87 days, and the inventory turned over about 4.11 times per year. This calculation uses sales figures as a proxy for the cost of goods sold, which may not be accurate in a real-world situation.
Step-by-step explanation:
To calculate the number of days Tater and Pepper Corp.'s inventory stayed on the premises (inventory days), we use the following formula: Inventory Days = (Inventory / Cost of Goods Sold) × 365. However, we only have the sales figure, not the cost of goods sold (COGS). Assuming the COGS is approximated by the sales figure, which isn't given but is needed to make an estimation, this approximation might not hold true in all cases as sales include mark-up over the COGS. If we use sales as an approximation, we calculate the inventory days as (5.6 million / 23 million) × 365. This gives us approximately 88.87 days.
To calculate the inventory turnover ratio, which tells us how many times per year the inventory turned over, we use this formula: Inventory Turnover Ratio = Sales / Inventory. Using the given figures, it's calculated as 23 million / 5.6 million, resulting in approximately 4.11 times per year.
Note that the exact numbers for COGS would provide more accurate results; in real business scenarios, sales figures can't be directly equated to COGS due to profits, discounts, and other factors. In case the costs of products were much longer, and we used more realistic prices, the total quantity spent over a year might be some messy-looking number like $17,147.51 or $27,654.92.