Calculate the inventory period of Havells Ltd with an annual cost of goods sold of $8 million, $1.5 million in average inventory, and a cashconversion cycle of 75 days?53.98 days65.6 days75 days68.44 days

Days in Inventory outstanding is used to determine the conversion of inventory in the cash cycle and…

Answered: Calculate the inventory period of…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
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Calculate the inventory period of Havells Ltd with an annual cost of goods sold of $8 million, $1.5 million in average inventory, and a cash conversion cycle of 75 days? 53.98 days 65.6 days 75 days 68.44 days