Assuming a 360-day year, calculate what the average investment in inventory would be for a firm, given

Question:

Assuming a 360-day year, calculate what the average investment in inventory would be for a firm, given the following information in each case:
a. the firm has a cost of goods sold figure of $480,000 and an average age of inventory of 40 days.
b. The firm has a cost of goods sold figure of $1,150,000 and an of 5.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...