Question

Galaxy Sales has sales of $938,300, cost of goods sold of $764,500, and inventory of $123,600. How long on average does it take the firm to sell its inventory?

Answer 1

Answer: 59 days

Explanation:

Given data:

Sales = $938,300.

cost of goods sold = $764,500.

inventory = $123,600.

Therefore:

How long does it take the firm to sell of it inventory.

Days available for sales in a year = 365

= 365 / ($764,500 / $123,600)

= 365 / 6.185

= 59.01 days

It would take the firm approximately 59 days to sell of it inventory.