Question

Tater and Pepper Corp. reported sales for 2018 of $27 million. Tater and Pepper listed $6.0...

Tater and Pepper Corp. reported sales for 2018 of $27 million. Tater and Pepper listed $6.0 million of inventory on its balance sheet.

How many days did Tater and Pepper’s inventory stay on the premises? (Use 365 days a year. Round your answer to 2 decimal places.)

How many times per year did Tater and Pepper’s inventory turn over? (Round your answer to 2 decimal places.)

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Answer #1
Calculate number of days inventory stay in premises as shown below:
No of days Inventory/Sales*365 days
No of days ($6 million/$27 million)*365
No of days 81.11 days
Thus, inventory stayed in premises for 81.11 days
Calculate inventory turnover
Inventory turnover Sales/Inventory
Inventory turnover $27 million/$6 million
Inventory turnover 4.50
Thus, 4.5 times per year inventory was turn over
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