Bobaflex Corporation has ending inventory of $701,073 and cost of goods sold for
ID: 2808037 • Letter: B
Question
Bobaflex Corporation has ending inventory of $701,073 and cost of goods sold for the year just ended was $7,461,613.
What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Inventory turnover times
What is the days’ sales in inventory? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Days’ sales in inventory days
How long on average did a unit of inventory sit on the shelf before it was sold? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Days on the shelf days
Explanation / Answer
Inventory turnover=COGS/Average inventory
=(7,461,613/701,073)=10.64 times(Approx)
Days’ sales in inventory =365/inventory turnover
=(365/10.64)=34.29 days
Days on the shelf=34.29 days(Approx).