Chapter
Exploration e Using the Information Number of Days of Sales in Inventory Ratio
Goal: Learn to calculate and interpret the number of days of sales in inventory ratio.
Instructions: Use the values given to calculate the number of days of sales in inventory ratio. Indicate whether the change in this ratio is favourable or unfavourable.
Correct Spelling is vital! Moodle is brutal! Consult the Chart of Accounts for help here.
If there are more than one debit or credit the account names must be in alphabetical order.
Do not include the $ sign in your answers.
Your answers must be correct to exactly decimal places.
Do not include the, indicating thousands in your answers.
Date Column: Enter the date in the form MMM DD eg January would be entered as Jan
Number of days of sales in inventory:
Rounded to decimal places.
Hint: The textbook example demonstrates how to calculate the average inventory, but they have already calculated it here.
Assuming all other things are constant, the change in this ratio is Favourable F Unfavourable U
