-What is the average number of days to sell inventory for Company Y?
A)15.3
B)24.8
C)23.9
D)25.6

Name: -What is the average number of days to sell inventory for Company Y? A)15.3 B)24.8 C)23.9 D)25.6
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Question

-What is the average number of days to sell inventory for Company Y?
A)15.3 
B)24.8 
C)23.9 
D)25.6

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold ÷ Inventory
Inventory turnover = $4,338,000 ÷ $295,000 = 14.71
Average number of days to sell inventory = 365 ÷ Inventory turnover
Average number of days to sell inventory = 365 ÷ 14.71 = 24.8 Days

-What Is the Average Number of Days to Sell Inventory