Salad Daze maintains an inventory of produce worth $572.88. Its total bill for produce over the course of the year was $69,700. How old on average is the lettuce it serves its customers?

The answer is 3 days

Explanation:

The days' sales in inventory is the number of days it took a company to sell its inventories during a given period of time.

The days sales in inventory tells how quick a company is moving its inventory.

Longer days inventory means the company cannot convert its inventory into cash sooner and that it takes longer time.

Days Sales in inventory:

(Ending Inventory/cost of goods sold) x 365days

Ending Inventory = $572.88

cost of goods sold = $69,700

($572.88/$69,700) x 365 days

= 0.008219 x 365

=3 days