question archive A firm has sales of
A firm has sales of
Subject:FinancePrice:2.86 Bought4
A firm has sales of .1 $720,000. The cost of goods sold is equal to 50% of sales. The firm has an average inventory of $6,000. How many days on average does it take the firm to sell its * ?inventory 2 (2 ????) days 9.84 days 4.71 days 88.54 days 6.08
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Days of inventory outstanding = Average inventory / Cost of Goods Sold * 365
Cost of Goods Sold = 50% * Sales = 50% * 720000 = 360000
Days of inventory outstanding = 6000 / 36000 * 365 = 6.08 days
Ans: days 6.08
