At December 31, 2007, the following information (in thousands) was available for sunglasses manufacturer Sunshields Inc.: ending inventory $116,696; beginning inventory $98,992; cost of goods sold $268,279; and sales revenue $580,709. Calculate the following: (Round the inventory turnover ratio to 2 decimal places and the days in inventory to 0 decimal places.)
2007-10-19 09:56:33 · 3 answers · asked by kimtrong52 1 in Business & Finance ➔ Other - Business & Finance
I need to firgure out the Inventory turnover ratio and Days in inventory .
2007-10-19 10:09:09 · update #1
how would i calculate the average inventory, (begginning inven+ending inven)/2 ?
2007-10-19 10:23:11 · update #2
Ave inventory = (Beg. inv. + Ending inv.)/2 = 107,844
Inventory t/o = COGS/Ave. inventory = 268,279/107,844 = 2.49
Days in inventory = 365/Inv. t/o = 365/2.49 = 147 days
2007-10-21 01:30:53 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Inventory turnover = Cost of goods sold / average inventory.
Your average inventory is the median of your beginning and ending inventory.... Which equals 103,347.
Inventory TO = 268279 / 103347 = 2.60.
Days in inventory = # of days / Inventory TO
365 / 2.6 = 140.3
Hope that helps.
2007-10-19 10:11:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
i dont get it?
2007-10-19 10:03:49 · answer #3 · answered by Inuyasha Fan 101 3 · 0⤊ 0⤋