Ohio Valley Homecare Suppliers, Incorporated(OVHS) had $16 million in sales in 2015. Its cost of goods sold was $6.4 million, and its average inventory balance was$2.2 million.
a. Calculate the number of inventory days outstanding for OVHS.
b. The average number of inventory days in the industry is 73 days. By how much would OVHS reduces its investment in inventory. If it could improve its inventory days t meet the industry average?
The number of inventory days is days. 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 t meet the industry average?
OVHS would reduce its inventory by $