Cutting Edge Technologies reported the following information in their 2010 annual report:
$\begin{array}{lr}
& \text {In millions}\
\text { Net sales revenue } & \$ 18,860 \
\text { Cost of sales } & 11,010 \
\text { December } 31,2010 \text { inventory } & 1,840 \
\text { December } 31,2011 \text { inventory } & 1,550
\end{array}$ 1.Determine the inventory turnover ratio.
2.Determine the average days to sell inventory.
3.Explain the meaning of each number.

Question

Cutting Edge Technologies reported the following information in their 2010 annual report:
 $\begin{array}{lr}
& \text {In millions}\
\text { Net sales revenue } & \$ 18,860 \
\text { Cost of sales } & 11,010 \
\text { December } 31,2010 \text { inventory } & 1,840 \
\text { December } 31,2011 \text { inventory } & 1,550
\end{array}$ 1.Determine the inventory turnover ratio.
2.Determine the average days to sell inventory.
3.Explain the meaning of each number.

Quizplus · Accepted Answer

The Answer of Cutting Edge Technologies reported the following information in their 2010 annual report:
 $\begin{array}{lr}
& \text {In millions}\
\text { Net sales revenue } & \$ 18,860 \
\text { Cost of sales } & 11,010 \
\text { December } 31,2010 \text { inventory } & 1,840 \
\text { December } 31,2011 \text { inventory } & 1,550
\end{array}$ 1.Determine the inventory turnover ratio.
2.Determine the average days to sell inventory.
3.Explain the meaning of each number.

Cutting Edge Technologies Reported the Following Information in Their 2010