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The Following Information Is Available for the Starr Corporation Calculate the Company's Inventory Turnover and Its Days' Sales in

Question 183

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The following information is available for the Starr Corporation:
 Sales $750,000 Cost of goods sold 450,000 Gross profit 300,000 Operating income 85,000 Net income 42,000 Inventory, beginning-year 71,200 Inventory, end-of-year 48,800\begin{array} { | l | r | } \hline \text { Sales } & \$ 750,000 \\\hline \text { Cost of goods sold } & 450,000 \\\hline \text { Gross profit } & 300,000 \\\hline \text { Operating income } & 85,000 \\\hline \text { Net income } & 42,000 \\\hline \text { Inventory, beginning-year } & 71,200 \\\hline \text { Inventory, end-of-year } & 48,800 \\\hline\end{array} Calculate the company's inventory turnover and its days' sales in inventory.

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Inventory turnover = $450,000/...

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