Johnson's Electronics Store has annual sales of $750,000, cost of goods sold of $450,000, average inventory of $150,000, and accounts receivable of $62,500. Calculate the average number of days it takes the firm to sell its inventory (assume all sales are on credit).

Johnson's Electronics Store has annual sales of $750,000, cost of goods sold of $450,000, average inventory of $150,000, and accounts receivable of $62,500. Calculate the average number of days it takes the firm to sell its inventory (assume all sales are on credit).

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 11P: Negus Enterprises has an inventory conversion period of 50 days, an average collection period of 35...

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Question

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Subject: financial accounting

Johnson's Electronics Store has annual sales of
$750,000, cost of goods sold of $450,000, average
inventory of $150,000, and accounts receivable of
$62,500. Calculate the average number of days it takes
the firm to sell its inventory (assume all sales are on
credit).

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