Question

st r ade OOK ORION Downloadable eTextbook ent CALCULATOR FULL SCREEN PRINTER VERSION BACK NET Brief Exercise 6-9 At December 31, 2015, the following information was available for A. Kamble Company: ending Inventory $42,510, beginning inventory $57,430, cost of goods sold $260,330, and sales revenue $397,020. Calculate inventory turnover for A. Kamble Company. (Round answer to 1 decimal place, e.g. 1.5.) Inventory turnover times LINK TO TEXT Calculate days in inventory for A. Kamble Company. (Round answer to 1 decimal place, e.g. 1.5. Use 365 days for calculation.) Days in inventory s days

Answer 1

PART 1

Inventory turnover = Cost of Goods Sold / Average Inventory = $260,330 / 49,970= 5.20 times

PART 2

Days in inventory = 365 / Inventory Turnover = 365 / 5.20 = 70.19 days

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