Dabble, Inc
Subject:FinancePrice:2.86 Bought3
Dabble, Inc. has sales of $973,000 and cost of goods sold of $470,000. The firm had a beginning inventory of $32,500 and an ending inventory of $42,500.
What is the length of the days’ sales in inventory? (Use 365 days a year. Round your answer to 2 decimal places.)
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Inventory turnover ratio = Cost of goods sold / Ending inventory
= $470,000 / $42,500
= 11.06
Lenght of days sales in inventory = 365 / Inventory turnover ratio
= 365 / 11.06
= 33.00 days.
