Bobaflex Corporation has ending inventory of $713,673 and cost of goods sold for
ID: 2815874 • Letter: B
Question
Bobaflex Corporation has ending inventory of $713,673 and cost of goods sold for the year just ended was $9,259,165.
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
a. inventory turnover=COGS/Ending inventory
=(9259165/713673)
=12.97 times(Approx)
b.Days’ sales in inventory=365/ inventory turnover
=(365/12.97396006)
=28.13 days(Approx)
c.
Days on the shelf
=28.13 days(Approx)