Question

Check my work Tater and Pepper Corp. reported sales for 2018 of $23 million. Tater and Pepper listed $5.6 million of inventory on its balance sheet. points How many days did Tater and Pepper's inventory stay on the premises? (Use 365 days a year. Round your answer to 2 decimal places.) 8 02:43:17 Days' sales in inventory days eBook How many times per year did Tater and Pepper's inventory turn over? (Round your answer to 2 decimal places.) Hint Inventory turnover Print References

Answer 1

Days sales in Inventory = (Average Inventory * 365 days) / Sales

Days sales in Inventory = ($5,600,000 * 365 days) / $23,000,000

Days sales in Inventory = 88.87 days

Inventory Turnover = Sales or cost of sales / Average Inventory

Inventory Turnover = $23,000,000 / $5,600,000

Inventory Turnover = 4.11 times