Lionworks, Inc. has goods available for sale in the amount of $123,000; beginning inventory is $41,000; ending inventory is

Question

3 years ago

12

Lionworks, Inc. has goods available for sale in the amount of $123,000; beginning inventory is $41,000; ending inventory is

$38,000; and cost of goods sold is $80,000. How many days could Lionworks operate without buying any more inventory? (Round any intermediary calculations two decimal places, X.XX, and your final answer to the nearest day.)

Business

1 answer:

Paha777 [63] · Answer 1 · 2021-11-17T04:27:29+03:00

Answer:

DSI = 180.21 DAYS.

Explanation:

Average inventory = [(open) inventory +(end) inventory] / 2

= (41000+38000)/2 = 39500

As we know that : Days sales of inventory (DSI)= ( Average inventory / cost of goods sold) * 365

= (39500 / 80000 ) * 365

= 180.21 days. It tells the effectiveness of company inventory management,here lionworks takes 180 average days to sell of his entire inventory

​Lionworks, Inc. has goods available for sale in the amount of​ $123,000; beginning inventory is​ $41,000; ending inventory is​

Lionworks, Inc. has goods available for sale in the amount of $123,000; beginning inventory is $41,000; ending inventory is