Asked by
Cyrus Grimes
on Nov 14, 2024
Verified
A company has average inventory on hand of $40,000 and its average days in inventory is 26.4 days.What is the cost of goods sold?
A) $1,056,000
B) $553,030
C) $486,667
D) $480,000
Average Inventory
The mean value of a company's inventory over a specific period of time, used to calculate cost of goods sold and other financial metrics.
Days In Inventory
Days in inventory is a financial metric that measures the average number of days a company holds inventory before selling it, indicating the efficiency of inventory management.
- Perform calculations and provide interpretations for inventory turnover and inventory day counts.
- Interpret the effects of managing inventory and receivables on a company's cash flow.
Verified Answer
CM
Learning Objectives
- Perform calculations and provide interpretations for inventory turnover and inventory day counts.
- Interpret the effects of managing inventory and receivables on a company's cash flow.