Question

Current Attempt in Progress Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley Inc.: ending inventory $172,000; beginning inventory $125,000; cost of goods sold $395,010 and sales revenue $768,000. Incorrect answer iconYour answer is incorrect. Calculate the inventory turnover for Oakley, Inc. (Round inventory turnover to 2 decimal places, e.g. 5.12.) Inventory turnover enter inventory turnover ratio rounded to 2 decimal places 1.88 times eTextbook and Media List of Accounts Incorrect answer iconYour answer is incorrect. Calculate the days in inventory for Oakley, Inc. (Round days in inventory to 0 decimal places, e.g. 125.) Days in inventory enter days in inventory rounded to the nearest whole 100 days

Answer 1

Answer:

                                           OAKLEY

INVENTORY TURNOVER  2,66  

Cost Of Goods                 395,010  

Average Inventory            148,500  

DAYS IN INVENTORY        137  

Explanation:

To calculate the Inventory Turnover ratio it's necessary to calculate the average inventory of the year , the take the Total Cost of Goods and divide it by the Average Inventory, the result it's the Inventory Turnover of the company, in this case 2,66  

To find the days in inventory we have to divide 365 (days of the year) and divide it by the Inventory Turnover, 2,66, the result is 137 days.

      END  START

$172,000   $125,000  Inventory

$ 768,000  Sales Revenue

$ 395,010  Cost of Goods Sold

OAKLEY

INVENTORY TURNOVER  2,66  

Cost Of Goods  395,010  

Average Inventory  148,500  

DAYS IN INVENTORY  137