50.85 days 72.65 days

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Gibson's has sales for the year of $538,900, cost of goods sold equal to 73 percent of sales, and
an average inventory of $78,300. The profit margin is 7 percent and the tax rate is 21 percent.
How many days, on average, does it take the company to sell an inventory item? Assume 365
days per year.
Transcribed Image Text:Gibson's has sales for the year of $538,900, cost of goods sold equal to 73 percent of sales, and an average inventory of $78,300. The profit margin is 7 percent and the tax rate is 21 percent. How many days, on average, does it take the company to sell an inventory item? Assume 365 days per year.
Gibson's has sales for the year of $538,900, cost of goods sold equal to 73 percent of sales, and
an average inventory of $78,300. The profit margin is 7 percent and the tax rate is 21 percent.
How many days, on average, does it take the company to sell an inventory item? Assume 365
days per year.
Transcribed Image Text:Gibson's has sales for the year of $538,900, cost of goods sold equal to 73 percent of sales, and an average inventory of $78,300. The profit margin is 7 percent and the tax rate is 21 percent. How many days, on average, does it take the company to sell an inventory item? Assume 365 days per year.
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