The Cape Corporation has ending inventory of $480,940, and cost of goods sold for the year just ended was $4,352,507.

 

What is the inventory turnover? (Round your answer to 2 decimal places. (e.g., 32.16))

  

Inventory turnover

times

 

What is the days' sales in inventory? (Use 365 days a year. Round your answer to 2 decimal places. (e.g., 32.16))

  

Days' sales in inventory

days

  

How long on average did a unit of inventory sit on the shelf before it was sold? (Use 365 days a year. Round your answer to 2 decimal places. (e.g., 32.16))

  

Inventory days on shelf

days

Explanation:

Inventory turnover = COGS / Inventory

Inventory turnover = $4,352,507 / $480,940 = 9.05 times

Days' sales in inventory = 365 days / Inventory turnover = 365 / 9.05 = 40.33 days

On average, a unit of inventory sat on the shelf 40.33 days before it was sold.