Net sales 5,000,000 Acct Rec 100,000 Acct Payable 80,000 Inv 150,000 COGS 2,500,000 Net income: 300,000...

Net sales 5,000,000

Acct Rec 100,000

Acct Payable 80,000

Inv 150,000

COGS 2,500,000

Net income: 300,000

Total Assets: 10,000,000

Total Book value of equity 6,000,000

Whats the days sales in inventory for the firm?

a.36.5

b21.9

c18.25

d29.2

e.32.74

Solutions

Expert Solution

Inventory turnover ratio = Cost of goods sold / Inventory = 2,500,000 / 150,000 = 16.667

Days sales in inventory = 365 / Inventory turnover ratio

Days sales in inventory = 365 / 16.667

Days sales in inventory = 21.9

jeff jeffy answered 2 years ago

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