Ask Question
30 October, 02:43

SQC Inc. had sales of $3,000,000, cost of merchandise sold of $2,100,000, and average inventory of $140,000. What is SQC Inc.'s days' sales in inventory? (Round the answer to the nearest whole number.)

+1
Answers (1)
  1. 30 October, 04:48
    0
    Days' sales in inventory = 24 days.

    Explanation:

    We know,

    Days' sales in inventory = 365 : Inventory Turnover

    Given,

    Inventory Turnover = Cost of goods sold (cost of merchandise sold) : Average inventory

    Inventory Turnover = $2,100,000 : $140,000

    Inventory Turnover = 15 times

    Therefore,

    Days' sales in inventory = 365 : 15 times

    Hence, Days' sales in inventory = 24.33 days

    Days' sales in inventory = 24 days.

    Days' sales in inventory indicates that within 24 days, the company can sell the inventory.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “SQC Inc. had sales of $3,000,000, cost of merchandise sold of $2,100,000, and average inventory of $140,000. What is SQC Inc.'s days' sales ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers