Managerial Accounting (15th Edition)

Published by McGraw-Hill Education
ISBN 10: 007802563X
ISBN 13: 978-0-07802-563-1

Chapter 15 - Financial Statement Analysis - The Foundational 15 - Required - Page 698: 10

Answer

6.96; 52.44

Work Step by Step

The inventory turnover = Cost of goods sold ÷ Average inventory balance = $\frac{400.000}{(60.000+55.000)/2}\approx6.96$ The average sale period = 365 days ÷ Inventory turnover = $\frac{365}{6.96}\approx 52.44$
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