Joe’s Beer, Bait, & Tackle Co. is a small chain of fishingtackle stores in northern Minnesota. In 2009, the company’s revenuewas $4,300,000 and its cost of sales was $3,200,000. Assume 52weeks and 365 days per year.

Joe keeps only 5.5 days-of-supply of inventory on averagebecause much of his inventory is live bait and micro-brew beer,both of which have a short shelf life.

What is his annual inventory turns?

5.5

7

66

61,538

What is his flowrate of dollars($) through hisstore per day?

8,767

3,200,000

4,300,000

On average, how much inventory (expressed indollars) does he have in the store?

66

48,219

581,818

On average, how many days does a dollar ($) of inventory spendin his store?

1.3

5.5

24