Belt Company had net sales of $2,225,500,000 and cost of goods sold of $1,479,957,500. Belt had the following balances: January 1 December 31 Inventories $335,000,000 $350,000,000 Assume 365 days per year. a) Calculate the average inventory. b) Calculate the inventory turnover ratio. (Round to two decimal places.) c) Calculate the inventory turnover in days. (Round to two decimal places.)
Belt Company had net sales of $2,225,500,000 and cost of goods sold of $1,479,957,500. Belt had the following balances: January 1 December 31 Inventories $335,000,000 $350,000,000 Assume 365 days per year. a) Calculate the average inventory. b) Calculate the inventory turnover ratio. (Round to two decimal places.) c) Calculate the inventory turnover in days. (Round to two decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Belt Company had net sales of $2,225,500,000 and cost of goods sold of $1,479,957,500. Belt had the following balances:
January 1 December 31
Inventories $335,000,000 $350,000,000
Assume 365 days per year.
a) Calculate the average inventory.
b) Calculate the inventory turnover ratio.
(Round to two decimal places.)
c) Calculate the inventory turnover in days.
(Round to two decimal places.)
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