The average inventory shown on Drip-Fixer Plumbings balance sheet is $270,000. The inventory conversion period is nine

Question:

The average inventory shown on Drip-Fixer Plumbing’s balance sheet is $270,000. The inventory conversion period is nine days.

(a) What is the inventory turnover?

(b) What amount of inventory does Drip-Fixer normally purchase each day?

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Ali Khawaja

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