On average, a firm sells $2,000,000 in merchandise a month. It keeps inventory equal to one-half of its monthly sales on hand at all times. If the firm analyzes its accounts using a 365-day year, what is the firm’s inventory conversion period (ICP)? (Hint: ICP = 365/(sales/inventory)

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A: The ratio is calculated to determine the relationship between 2 numbers. In accounting, Ratios are…

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A: Formula: Inventory turnover = Cost of goods sold / Average inventory.

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A: INVENTORY TURNOVER RATIO Inventory Turnover Ratio is the Ratio between Cost of Goods Sold &…

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A: Sales = 24,000,000 Inventory = 5,700,000 Number of days of inventory

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A:

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A: Inventory refers to the goods or items which are stored by the business either for selling or for…

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A: Inventory days is a concept in costing that shows how much time it takes the firm to sale its…

Q: ending invento sales in inver

A: First of all, found the Inventory Turn Over Ratio ITOR = Cost of Goods Sold / Average Inventory  If…

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A: Introduction: Inventory turnover ratio = Cost of goods sold / Average Inventory. Division of Average…

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A:

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A: Formula: Inventory turnover = ( Cost of goods sold / Average inventory )

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A:

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A: Formula used: Inventory turnover ratio = Sales Inventory

Q: 50.85 days 72.65 days

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A: First calculate average inventory.

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Receivables Management