Question

had $35 million in sales last year. Its cost of goods sold was $25 million and its average inventory balance was $3 million. What was its average days of inventory

Answer 1

Answer: 43.8 days

Step-by-step explanation:

Average days of school inventory can be calculated as:

= Average inventory balance/(Cost of goods sold/365)

= $3million/($25 million/365)

= $3 million/$68493.15

= 43.8 days