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20 November, 22:08

Assume a firm's inventory level of $11,500 represents 33 days' sales. What is the inventory turnover ratio? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.)

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  1. 20 November, 22:13
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    11.06

    Explanation:

    Cost of goods sold = Inventory * Number of days / Sales days = (11,500 * 365 / 33) = 127,196.9697

    Inventory Turnover Ratio = Cost of goods sold / Inventory = (127,196.9697/11,500) = 11.06 times per year
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