Jetz is the leading manufacturer of personal computers. In a recent year, it reported the following in dollars in millions: Net sales revenue $ 76,131 Cost of sales 59,344 Beginning inventory 1,760 Ending inventory 1,860 Required: Determine the inventory turnover ratio and average days to sell inventory for the current year. (Use 365 days a year. Round your intermediate calculations and final answers to 2 decimal places.)

Results are below.

Explanation:

Giving the following information:

Net sales revenue $ 76,131

Cost of sales 59,344

Beginning inventory 1,760

Ending inventory 1,860

First, we need to calculate the average inventory:

Average inventory = (beginning inventory + ending inventory) / 2

Average inventory = (1,760 + 1,860) / 2

Average inventory = 1,810

Now, the inventory turnover ratio:

inventory turnover ratio = cost of goods sold / average inventory

inventory turnover ratio = 59,344/1,810

inventory turnover ratio = 32.79

Finally, the average days to sell inventory:

average days to sell inventory = 365/inventory turnover

average days to sell inventory = 365/32.79

average days to sell inventory = 332.21 days