Note 3 to the 2016 financial statements of Willamette Valley Vineyards reports that Inventories consist of the following:
The company reported cost of goods sold of $7,204,884 in 2016 and $7,092,111 in 2015. At December 31, 2014, Total inventories were $ 9,910,570.
Compute average days inventory outstanding for both years. What does this ratio mean? Interpret the ratios.

Question

Note 3 to the 2016 financial statements of Willamette Valley Vineyards reports that Inventories consist of the following:
  The company reported cost of goods sold of $7,204,884 in 2016 and $7,092,111 in 2015. At December 31, 2014, Total inventories were $ 9,910,570.
Compute average days inventory outstanding for both years. What does this ratio mean? Interpret the ratios.

Quizplus · Accepted Answer

The Answer of Note 3 to the 2016 financial statements of Willamette Valley Vineyards reports that Inventories consist of the following:
  The company reported cost of goods sold of $7,204,884 in 2016 and $7,092,111 in 2015. At December 31, 2014, Total inventories were $ 9,910,570.
Compute average days inventory outstanding for both years. What does this ratio mean? Interpret the ratios.

Note 3 to the 2016 Financial Statements of Willamette Valley