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Turnbull Department Store had net credit sales of $18,000,000 and cost of goods sold of $15,000,000 for the year. The average inventory for the year amounted to $2,500,000. Inventory turnover for the year is

a.365 days.
b.48.7 days
c.46 days
d.30 days

Respuesta :

Kolawole845

Answer:

Inventory turnover period = 60.8 days

Explanation:

The inventory turnover period also known as the inventory days is the average length of time it takes  business to sell its stocks and replace same. The shorter the better as it indicates a high patronage from  customers.

It is calculated as follows:

Inventory turnover = (Average inventory / cost of goods ) × 365 days

                              = (2,500,000/15,000,000)× 365 days

                              = 60.83 days

Inventory turnover for the period is 6 times.  

  • The calculation is as follows:

Inventory turnover ratio = Cost of goods sold ÷  Average inventory

= $15,000,000 ÷  $2,500,000

= 6 times.

The given options are wrong.

Learn more: https://brainly.com/question/1289629?referrer=searchResults

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