Answer:
232.08 days
Explanation:
Inventory to sales conversion period is the average length of time it will take a business to sell its stock items and then replace them. It give s an indication of patronage from customers and the shorter the better.
It is determined as follows:
Average inventory period
= (Average inventory/cost of goods sold) × 365 days
= (110,000/173,000) × 365 days
= 232.08 days
It takes on the average 232.08 days to sell and replace stock
