Retail Inventory Method & LCM
Retail Inventory Method & LCM Solution to Problem 67 Turnover Ratios Inventory turnover ratio = CGS ÷ Avg inventory = 8.0 Days sales in EI = Avg inventory ÷ (CGS ÷365) = 45.625 AR turnover ratio = Sales ÷ Avg AR = 4.0909 Average collection period = Avg AR ÷ (Sales ÷ …