In: Finance
Dabble, Inc., has sales of $980,000 and cost of goods sold of $640,000. The firm had a beginning inventory of $36,000 and an ending inventory of $46,000. |
What is the length of the days’ sales in inventory? (Use 365 days a year. Round your answer to 2 decimal places. Use ending inventory rather than average inventory.) |
Days' sales in inventory | days |
Days Sales in Inventory (DSI) = Inventory/COGS * 365
For this question,
Inventory = $46,000 (question asks to use ending inventory)
DSI = 46,000/640,000 * 365
DSI = 26.23 days