Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Get detailed and accurate answers to your questions from a community of experts on our comprehensive Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.
Sagot :
84.84 days take Mario's to sell its inventory.
What is meant by Inventory?
All the goods, merchandise, and supplies that a company keeps on hand in anticipation of selling them for a profit are referred to as inventory.
The products and materials that a company keeps on hand with the intention of reselling, producing, or using them are referred to as inventory or stock. The main focus of inventory management is determining the location and shape of stocked commodities.
Data given in the question:
Sales = $2,880
costs of goods sold = $2,220
Inventory = $51
Accounts receivable = $436
Now,
Time taken to sell inventory = 365 ÷ ( Inventory Turnover Ratio )
also,
Inventory Turnover Ratio = [ Cost of goods sold ] ÷ [ Average inventory ]
= $2,220 ÷ $516
= 4.3023
Therefore,
Time taken to sell inventory = 365 ÷ 4.3023
= 84.84 days
To learn more about Inventory refer to:
https://brainly.com/question/24868116
#SPJ4
Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.
