Assume the following data: Sales = 3200; Cost of goods sold = 1600; Total assets = 1600; Inventory = 200. Calculate the days in inventory. 22.8 45.6 18.3 16.0

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Assume the following data: Sales = 3200; Cost of goods sold = 1600; Total assets = 1600;  Inventory = 200. Calculate the days in inventory.

22.8

45.6

18.3

16.0

0

Answer: days in inventory  =45.6

Explanation to the above answer

We have been provided with the information ,that

Sales = 3200;

Cost of goods sold = 1600;

Total assets = 1600;

Inventory = 200.

Now we will calculate the days in inventory as follow

days in inventory = ( Ending inventory  /COGS) *365

=(200/ 1600) *365

=45.625

=45.6

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