Big bang fireworks normally purchases 120000 of inventory, Finance Basics

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Big bang fireworks normally purchases 120000 of inventory

Big Bang Fireworks normally purchases $120,000 of inventory each day. Each item normally remains in inventory 18 days before it is sold.

(a) What is the average amount of inventory that is reported on Big Bang's balance sheet?

(b) What is the inventory turnover?

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Finance Basics: Big bang fireworks normally purchases 120000 of inventory

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