Question

beckenworth had cost of goods sold of $10,321 million, ending inventory of $2,989 million, and average inventory of $2,055 million. its days' sales in inventory equals: (use 365 days a year.)

Answer 1

Beckenworth's days' sales in inventory is approximately 105.7 days, calculated by dividing the ending inventory by the cost of goods sold and then multiplying the result by 365.

Step-by-step explanation:

The question is asking to calculate Beckenworth's days' sales in inventory, which is a measure of how efficiently a company manages its inventory. To do this, we will use the formula:

Days' Sales in Inventory = (Ending Inventory / Cost of Goods Sold) × 365 days

Based on the provided data:

• Cost of Goods Sold (COGS) = $10,321 million
• Ending Inventory = $2,989 million
• Average Inventory = $2,055 million (though this is not needed for the calculation)

We can apply the values to the formula like this:

Days' Sales in Inventory = ($2,989 million / $10,321 million) × 365 = 0.2896 × 365 ≈ 105.7 days

This calculation indicates that it takes approximately 105.7 days for Beckenworth to sell its entire inventory.