Answer:
Inventory TurnOver 8.35
Days outstanding 43.71
Average days outstanding 21.86
Explanation:
[tex]\frac{COGS}{Inventory} = $Inventory Turnover[/tex]
[tex]\frac{4016851}{481060} = $Inventory Turnover[/tex]
Inventory TO 8.35
This means the inventory is being sold 8.35 times during the year
[tex]\frac{365}{Inventory TO} = $Days on Inventory[/tex]
[tex]\frac{365}{8.35} = $Days on Inventory[/tex]
Days on Inventory 43.71
The entire inventory is being replaced every 43.71 days
If we assume the batch is sold uniformly over those days
then the haverage wil lbe half of the days outstading:
43.71 / 2 = 21,855 = 21.86