Nico corporation has cost of goods sold of $300,000 and inventory of $30,000, then the inventory turnover is ________ and the av

Question

mr_godi [17]

4 years ago

6

Nico corporation has cost of goods sold of $300,000 and inventory of $30,000, then the inventory turnover is ________ and the av

erage age of inventory is ________.

Business

1 answer:

Scrat [10] · Answer 1 · 2021-12-13T00:01:46+03:00

<span>Given: -
Cost of goods sold = $300,000
Inventory = $30,000
We need to find:
1) Inventory turnover
2) Average age of inventory
Solution:
1) Inventory turnover = Cost of Goods Sold/inventory = 300,000/30,000 Inventory turnover = 10.
2) Average age of Inventory = (Inventory/Cost of Goods Sold) * 365 Average age of Inventory = (30,000/300,000) * 365 = 36.5</span>