Question

Dell has been aggressively cutting their days of inventory. In the third quarter of 2009, Dell reported $952 million of inventory, $10,663 million of sales and $12,896 million of cost of goods sold. How many days of inventory did Dell have in the third quarter of 2009

Answer 1

Answer:

27 days

Explanation:

The computation of the days of inventory is given below:

= 365 days ÷ inventory turnover ratio

= 365 days ÷ ($12,896  million ÷ $952 million)

= 365 days ÷ 13.55

= 27 days

We assume that the inventory i.e given in the question is average inventory