Acompany reports the following: cost of goods sold $660,000 average inventory 60,000 determine (a) the inventory turnover and (b) the number of days' sales in inventory. round interim calculations to the nearest dollar and final answers to one decimal place. assume 365 days a year.

(a) Inventory turnover = $11

(b) Total number of days = 33.2 days

Explanation:

We have given cost of goods sold (COGS) = $660000

Average inventory = 60000

(a) We have to find inventory turnover

Inventory turnover is given by

(b) Number of days sales in inventory =

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23

a

explanation: