Belt Company had net sales of $2,225,500,000 and cost of goods sold of $1,557,850,000. Belthad the following

Question:

Belt Company had net sales of $2,225,500,000 and cost of goods sold of $1,557,850,000. Belthad the following balances:

Required:
1. Calculate the average inventory.
2. Calculate the inventory turnover ratio.
3. Calculate the inventory turnover in days.

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,...