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29 April, 19:31

Tops had cost of goods sold of $10,821 million, ending inventory of $3,489 million, and average inventory turnover of $2,105 million. Its days' sales in inventory equals: (Use 365 days a year.)

71.0 days

46.7 days

46.4 days

117.7 days

0.3 days

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  1. 29 April, 19:58
    0
    71.0 days

    Explanation:

    The formula to compute the Days sales in inventory is shown below

    = Total number of days in a year : inventory turnover ratio

    where,

    Total number of days in a year = 365 days

    And, the inventory turnover ratio is

    = Cost of goods sold : average inventory

    = $10,821 million : $2,105 million

    = 5.14 times

    So, the days sales in inventory equals to

    = 365 days : 5.14 times

    = 71.0 days
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