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SkyeShadow525
10.10.2019 •
Business
Ottawa, inc. provides the following data: 2019 2018 cash $23,000 $22,000 accounts receivable, net 37,000 37,000 merchandise inventory 55,000 25,000 property, plant, and equipment, net 127,000 96,000 total assets $242,000 $180,000 for the year ending december 31, 2019: net credit sales $300,000 cost of goods sold (170,000) gross profit $130,000 calculate the days' sales in inventory for 2019. (use 365 days for any calculations. round any intermediate calculations and your final answer to two decimal places.)
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Ответ:
The days' sales in inventory for 2019 is 85.88 days
Explanation:
For computing the days' sales in inventory first we have to compute the inventory turnover ratio.
Inventory turnover ratio = Cost of goods sold ÷ average inventory
where,
Average inventory = (Opening balance of inventory + ending balance of inventory) ÷ 2
= ($25,000+ $ 55,000 ) ÷ 2
= $40,000
And, the cost of good sold is $170,000
Now put these values to the above formula
So, the answer would be equal to
= $170,000 ÷ $40,000
= 4.25 times
Now days sales inventory = Total number of days in a year ÷ inventory turnover ratio
= 365 days ÷ 4.25 times
= 85.88 days
Ответ: