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22 March, 11:29

Tater and Pepper Corp. reported sales for 2018 of $28 million. Tater and Pepper listed $6.1 million of inventory on its balance sheet. How many days did Tater and Pepper's inventory say on the premises?

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  1. 22 March, 12:36
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    Inventory turnover = Sales / inventory

    Inventory turnover = 28,000,000 / 6,100,000

    Inventory turnover = 4.59

    Day's sales inventory = 365 / Inventory turnover

    Day's sales inventory = 365 / 4.59

    Day's sales inventory = 79.52 days
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