Question

Beckenworth had cost of goods sold of $11,121 million, ending inventory of $3,789 million, and average inventory of $2,135 million. Its days' sales in inventory equals:________. (Use 365 days a year.)

Answer 1

Answer:

124.4 days

Explanation:

Calculation for what Its days' sales in inventory equals:

Using this formula

Days' sales in inventory =Ending inventory/Cost of goods sold*365 days.

Let plug in the formula

Days' sales in inventory=$3,789 million / $11,121 million *365

Days' sales in inventory = 124.4 days

Therefore Its days' sales in inventory equals:124.4 days