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Find average number of days inventory outstanding ratios

Happy Valley Homecare Suppliers, Inc. (HVHS), had $20 million in sales in 2010. Its cost of goods sold was $8 million, and its average inventory balance was $2,000,000.

a. Calculate the average number of days inventory outstanding ratios for HVHS.

b. The average days of inventory in the industry is 73 days. By how much would HVHS reduce its investment in inventory if it could improve its inventory days to meet the industry average?

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Finance Basics: Find average number of days inventory outstanding ratios

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find average number of days inventory outstanding ratios

Reference No:- TGS0557587

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find average number of days inventory outstanding ratios

Reference No:- TGS0557587

Recent Questions Asked Finance Basics

Q : Which is better measure of performance nopat or net income

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Q : Find dividend payout ratio if dividends paid to stockholders

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Q : Find average number of days inventory outstanding ratios

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