Answer:
Results are below.
Explanation:
Giving the following information:
Net sales revenue $ 76,131
Cost of sales 59,344
Beginning inventory 1,760
Ending inventory 1,860
First, we need to calculate the average inventory:
Average inventory= (beginning inventory + ending inventory)/2
Average inventory= (1,760 + 1,860)/2
Average inventory= 1,810
Now, the inventory turnover ratio:
inventory turnover ratio= cost of goods sold/ average inventory
inventory turnover ratio= 59,344/1,810
inventory turnover ratio= 32.79
Finally, the average days to sell inventory:
average days to sell inventory= 365/inventory turnover
average days to sell inventory= 365/32.79
average days to sell inventory= 332.21 days
