Average Inventory, Inventory Turnover Ratio, Inventory Turnover in Days
Belt Company had net sales of $2,448,050,000 and cost of goods sold of $3,654,927.52. Belt had the following balances:
January 1 December 31
Inventories $8,152,616.32 $-3,147,710.72
Required:
Assume 365 days per year.
1. Calculate the average inventory.
2. Calculate the inventory turnover ratio. Round to two decimal places.
3. Calculate the inventory turnover in days. Round to two decimal places.