Purchase Solution

Days in inventory

Not what you're looking for?

Ask Custom Question

Middleton's has sales for the year of $311,400, cost of goods sold equal to 74 percent of sales, and an average inventory of $42,800. The profit margin is 6 percent and the tax rate is 34 percent. How many days on average does it take the firm to sell an inventory item?

Purchase this Solution
Solution Summary

The solution explains how to calculate the number of days it takes to sell inventory.

Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Inventory outstanding for Ohio Valley Homecare Suppliers

    e. 89.9 days The days of inventory outstanding is how many times a company turns over its inventory in a year.

  • Net Change in the Cash Conversion Cycle

    If sales can be maintained at existing levels but inventory can be lowered by $2,000,000 and accounts receivable lowered by $2,000,000, what will be the net change in the cash conversion cycle? (Assume there are 360 days in the year.)

  • Working Capital

    (In terms of days) average collection period= 360 / Accounts receivable turnover= 360 /5.45 = 66 days Inventory turnover, number of days in inventory, account receivables turnover, average collection period (In terms of days) are calculated.

  • Cash-to-cash cycle for McGhee Corporation

    Cash to cash in assets = AR days + Inventory days which is the number of days it takes from buying the inventory till collecting the cash AR days = Accounts receivable/per day sales = 1,225,000/(15,968,000/365) = 28.69 days Inventory days = Inventory

  • Cash Conversion Cycle

    in accounts receivable and times per year that the firm turns over its inventory.

  • (Analytical procedures) In audit planning the audit of Circuits Technology, Inc. (CTI). CTI

    The most significant changes in 20x5 are the combined decrease in purchases and increase in gross margin, increasing to 52.4%, while inventory turn days also increases significantly, increasing to 199 days.

  • Cash Conversion Cycle

    81711 Calculate Inventory Set 3, Prob. # 1 Using the necessary steps, please calculate the cash conversion cycle of a firm with an inventory of $150,000,000, had $ 775,000,000 in sales over the year with a cost of goods sold of $ 581,000,000, receivables

  • Gross Profit Ratio, Inventory Turnover Ratio and Average Days

    Therefore, Dilliards is more efficient as it can quickly convert the inventory into sales. Average days in inventory is 96 days in case of Saks and 84 days for Dilliards. Lower average days in inventory is better.

  • Cash Conversion Cycles: Sears & JC Penney

    JC Penny's pays their suppliers by about 7 days earlier in 2009 compared to 2008. JC Penny's also sells its inventory 7 days earlier in 2009.

  • Cash Conversion Cycle Problem

    It is calculated as Cash conversion cycle = AR days + Inventory days - AP days In this question AR days = 40 days Inventory days = 53 days AP days = 20 days Cash conversion cycle = 40+53 -20 = 73 days (b) If Coffee Mill were to shorten its inventory

View More Related Solutions