Ohio Valley Homecare? Suppliers, Incorporated? (OVHS) had $20 million in sales in 2015. Its cost of goods sold was $8.0 ?million, and its average inventory balance was $1.9 million.
a. Calculate the number of inventory days outstanding for OVHS.
The number of inventory days is ____days. ?(Round to the nearest? integer.)
b. The average number of inventory days in the industry is 73 days. By how much would OVHS reduce its investment in inventory if it could improve its inventory days to meet the industry? average?
OVHS would reduce its inventory by ?$______. ?(Round to the nearest? dollar.)