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A7X Corporation has ending inventory of $705,273 and cost of goods sold for the year just...

A7X Corporation has ending inventory of $705,273 and cost of goods sold for the year just ended was $8,135,165.
a. What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.

What is the days’ sales in inventory? (Do not round intermediate calculations and 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Solutions

Expert Solution

a.
Inventory turnover=Cost of goods sold/ending inventory
8135165/705273
11.53477448
inventory turnover is 11.53
b.
day sales inventory= 365/inventory turnover
365/11.53477448
31.64344485
Inventoty turnover is 31.64
C.
A unit of inventory was on the shelf for an average period of 31.64 days before it was sold

jeff jeffy answered 2 years ago
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