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GaryK [48]
2 years ago
10

North Side Wholesalers has sales of $1,648,900. The cost of goods sold is equal to 71 percent of sales and the average inventory

is $75,800. How many days on average does it take to sell the inventory?
Mathematics
1 answer:
labwork [276]2 years ago
7 0

Answer: 16.8 days

Step-by-step explanation:

What is described is known as the Inventory turnover ratio.

It is calculated by:

= Average Inventory / Cost of goods sold * 365

Cost of goods sold = Sales * Percent of sales

= 1,648,900 * 71%

= $‭1,170,719‬

Inventory turnover ratio = ‭75,800 / ‭1,170,719‬ * 365

= 16.8 days

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