In: Finance
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
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