Question

Joe’s Beer, Bait, & Tackle Co. is a small chain of fishing tackle stores in northern Minnesota. In 2019, the company’s revenue was $4,300,000 and its cost of sales was $3,200,000. Assume 52 weeks and 365 days per year. Joe keeps only 7.59 days-of-supply of inventory on average because much of his inventory is live bait and micro-brew beer, both of which have a short shelf life. What is his annual inventory turns?

Answer 1

the annual inventory turn is 48.09

Step-by-step explanation:

The computation of the annual inventory turns is shown below:

Annual inventory turn

= Number of days in a year ÷ Number of days of inventory

= 365 days ÷ 7.59 days

= 48.09

We simply applied the above formula and the same is to be considered

hence, the annual inventory turn is 48.09

By dividing the total days from the inventory days we can get the annual inventory turn