In its 2019 annual report, Kingbird, Inc. reported inventory of $ 626 million on January 31, 2020, and $ 540 million on January 31,2019, cost of goods sold of $ 5,746 million for the year, and net sales of $ 7,184 million for the year.Compute Kingbird's inventory turnover for the fiscal year 2019. (Round answer to 2 decimal places, e.g. 7.62.)Inventory turnovertimesCompute Kingbird's average days to sell inventory for the fiscal year 2019. (Round answer to 2 decimal place, e.g. 7.65. Use 365 days forcalculation.)Average days to sell inventorydays

Answered: In its 2019 annual report, Kingbird,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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In its 2019 annual report, Kingbird, Inc. reported inventory of $ 626 million on January 31, 2020, and $ 540 million on January 31,
2019, cost of goods sold of $ 5,746 million for the year, and net sales of $ 7,184 million for the year.
Compute Kingbird's inventory turnover for the fiscal year 2019. (Round answer to 2 decimal places, e.g. 7.62.)
Inventory turnover
times
Compute Kingbird's average days to sell inventory for the fiscal year 2019. (Round answer to 2 decimal place, e.g. 7.65. Use 365 days for
calculation.)
Average days to sell inventory
days

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Inventory turnover is an accounting turnover ratio that determines the number of times inventory is converted into sold units in an accounting period. The major variables that determine the ratio is the stock lying in the warehouses and the cost of goods sold. The average days to sell inventory is just a secondary ratio to inventory turnover which determines the no. of days in which one set of inventory can be sold. Thus, it is an efficient and effective tool in inventory management where the exact no. of days can be computed in which inventory will get exhausted and has to be re-ordered.

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