Question
Amazon.com, Inc. is evaluating its inventory turnover for the quarter. The following data is provided: Cost of Goods Sold: $12,000,000 Beginning Inventory: $5,000,000
Amazon.com, Inc. is evaluating its inventory turnover for the quarter. The following data is
provided:
● Cost of Goods Sold: $12,000,000
● Beginning Inventory: $5,000,000
● Ending Inventory: $7,000,000
● Accounts Payable: $3,000,000
● Accounts Receivable: $4,000,000
● Sales Revenue: $20,000,000
● Gross Profit: $8,000,000
a) Compute the Inventory Turnover Ratio. b) Determine the Average Days to Sell Inventory. c)
Calculate the Accounts Payable Turnover Ratio. d) Analyze the Accounts Receivable Turnover
Ratio. e) Evaluate the Cash Conversion Cycle.
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