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In 2013, Firm ABC’s annual inventory turns were 8.1, and its Cost of Goods Sold (COGS)...

In 2013, Firm ABC’s annual inventory turns were 8.1, and its Cost of Goods Sold (COGS) was $ 521 million. What is the average inventory it holds in $ million during 2013? Round your answer to the nearest integer. For example, if your answer is $201.32 million or $201,320,000, input 201.

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Answer #1

Inventory turns = Cost of goods sold / Average inventory

Average inventory = Cost of goods sold / Turns

= 521 million / 8.1 = 64.321 or 64 million.

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