Question

if the inventory turnover ratio is 6, then the inventory days ratio is equal to which of the following? (round to the nearest tenth) 60.8 57.3 37.5

Explanation:

Step1: Recall the formula for inventory days ratio

The formula for inventory days ratio is $\text{Inventory Days Ratio} = \frac{365}{\text{Inventory Turnover Ratio}}$.

Step2: Substitute the given inventory turnover ratio

We are given that the inventory turnover ratio is 6. Substitute this value into the formula: $\text{Inventory Days Ratio} = \frac{365}{6}$.

Step3: Calculate the value

Calculate $\frac{365}{6} \approx 60.833\ldots$. Rounding to the nearest tenth gives 60.8.

Answer:

60.8