Question 15

An auto parts store has Inventory of $500,000 and days' sales in inventory of 50 days. What is its inventory turnover ratio, and its cost of goods sold?

1)Inventory turnover = 10,000, and its cost of goods sold = $50,000,000

2)Inventory turnover = 7.3, and its cost of goods sold = $3,650,000

3)Inventory turnover = 7.3, and its cost of goods sold = $68,439

4)Inventory turnover = 10, and its cost of goods sold = $5,000,000