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Why is it important for a company to analyze the average days in inventory?
In a problem statement, which of the following is extraneous information when calculating average days in inventory?
ABC company has a cost of goods sold of \$400,000 and an average inventory of \$100,000. Calculate the average days in inventory.
A company has an average days in inventory of 120 days, while the industry benchmark is 90 days. What does this indicate about the company's inventory management?
How is the inventory turnover ratio calculated?
LMN company has a beginning inventory of \$90,000, ending inventory of \$110,000, and cost of goods sold of \$500,000. Calculate the average days in inventory.
A company has an average days in inventory of 60 days, while the industry benchmark is 75 days. What does this indicate about the company's inventory management?
If a company has a beginning inventory of \$30,000 and an ending inventory of \$90,000, what is the average inventory?
XYZ company has a beginning inventory of \$80,000, ending inventory of \$120,000, and cost of goods sold of \$400,000. Calculate the average days in inventory.
What does a higher inventory turnover ratio imply about average days in inventory?