Determining inventory conversion period


Your firm's cost of goods sold (COGS) average $2,000,000 per month, and it keeps inventory equal to 50% of its monthly COGS on hand at all times. Using a 365-day year, what is its inventory conversion period?

a. 14.4 days

b. 13.0 days

c. 11.7 days

d. 15.2 days

e. 16.7 days

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Finance Basics: Determining inventory conversion period
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