The King Corporation has ending inventory of $483,824, and cost of goods sold for the year just ended was $4,233,460. a. What is the inventory turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e. g., 32.16.) b. What is the days' sales in inventory? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e. g., 32.16.) c. How long on average did a unit of inventory sit on the shelf before it was sold? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e. g., 32.16.)

Question

Krish Hood

Business

14 February, 17:47

The King Corporation has ending inventory of $483,824, and cost of goods sold for the year just ended was $4,233,460. a. What is the inventory turnover? (Do not round intermediate calculations. Round your answer to 2 decimal places, e. g., 32.16.) b. What is the days' sales in inventory? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e. g., 32.16.) c. How long on average did a unit of inventory sit on the shelf before it was sold? (Use 365 days a year. Do not round intermediate calculations. Round your answer to 2 decimal places, e. g., 32.16.)

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Answers (1)

Know the Answer?

Mike · Answer 1

a. 8.75 times

b. 41.71 days

c. 41.71 days

Explanation:

The computation is shown below:

a. Inventory Turnover = Cost of Goods Sold : Inventory

= $4,233,460 : $483,824

= 8.75 times

b. Days' sales in inventory = 365 : Inventory Turnover

= 365 : 8.75 times

= 41.71 days

c. Number of days for the unit of inventory sit on the shelf would be equal to the days' sales in inventory i. e 41.71 days