WebThe formula to calculate inventory days is as follows. Inventory Days = (Average Inventory ÷ Cost of Goods Sold) × 365 Days Average Inventory: The average inventory balance is … WebAug 8, 2024 · Days in Inventory = (Average Inventory / Cost of Goods Sold) x Period Length To calculate days in inventory, you need these details: Period length: Period length refers to the amount of time you want to calculate the days in inventory for. This number is often 365 for the number of days in one year.
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Web5) Lutherʹs Inventory days is closest to: A) 32 days B) 59 days C) 39 days D) 42 days Answer: B Explanation: B) Inventory days = Inventory COGS / 365 = $90 $560 / 365 =58.66 … WebJan 20, 2024 · Obtaining, after applying the inventory turnover ratio formula: \small \rm {Inventory \ turnover = 6.74} Inventory turnover =6.74. Finally, we use the inventory days formula, \small \rm {Inventory \ days = 54.1} Inventory days =54.1. We can conduct the same exercise for the other years for both companies, and we will build the following graph. barista seminar mannheim
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Web18) Luther's Accounts Payable days is closest to: A) 39 days B) 32 days C) 59 days D) 42 days Answer: A Explanatio n: A) Accounts Payables days = Accounts Payable COGS/365 = $60 $560/365 = 39.11 days A ) 39 days WebNov 11, 2024 · Luther Industries has 25 million shares outstanding trading at $18 per share. In addition, Luther has $150 million in outstanding debt. Suppose Luther's equity cost of capital is 13%, its debt cost of capital is 7%, and the corporate tax rate is 40%. Luther's unlevered cost of capital is closest to:_____A) 11.5%B) 10.8%C) 9.8%D) 13.0% WebDec 5, 2024 · Days Inventory Outstanding Formula The formula for days inventory outstanding is as follows: Days Inventory Outstanding = (Average inventory / Cost of sales) x Number of days in period Where: Average inventory = (Beginning inventory + Ending inventory) / 2 Cost of Salesis also known as Costs of Goods Sold suzuki boulevard m109r 2023