1. 

That's incorrect. To determine the average number of inventory days outstanding, first compute the inventory turnover rate to find how many times (on average) the inventory turns over using the following formula: InventoryTurnover=InventoryCOGS Then, compute the corresponding number of days in inventory using the following formula: Days in Inventory =InventoryTurnover365days Happy Valley Homecare Suppliers, Inc. (HVHS), had $19.3 million in sales in 2015 . Its cost of goods sold was $7.7 million, and its average inventory balance was $1.9 million. a. Calculate the average number of days inventory outstanding ratios for HVHS. b. The average number of inventory days in the industry is 73 days. By how much must HVHS reduce its investment in inventory to improve its inventory days to meet the industry? (Hint: Use a 365-day year.) a. Calculate the number of days inventory outstanding ratios for HVHS. The number of inventory days outstanding is days. (Round to two demical places.)