Net sales are 2000000 cost of goods sold is 960000 and avera

Net sales are $2,000,000, cost of goods sold is $960,000, and average inventory is $30,000. How many days sales are in inventory?

11.4

Solution

Days sales are in inventory = 365/cost of goods sold *average inventory = 365/960000*30000= 11.4 Option 1 is correct