Tops had cost of goods sold of $10,821 million, ending inventory of $3,489 million, and average inventory turnover of $2,105 million. Its days' sales in inventory equals: (Use 365 days a year.)

71.0 days

46.7 days

46.4 days

117.7 days

0.3 days

71.0 days

Explanation:

The formula to compute the Days sales in inventory is shown below

= Total number of days in a year : inventory turnover ratio

where,

Total number of days in a year = 365 days

And, the inventory turnover ratio is

= Cost of goods sold : average inventory

= $10,821 million : $2,105 million

= 5.14 times

So, the days sales in inventory equals to

= 365 days : 5.14 times

= 71.0 days