Calculate inventory days outstanding

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Toro is a local, publicly traded firm engaged in the business of manufacturing turf management products. Toro reported the following information about a recently ended fiscal year (dollars in thousands):

Cash $310,256 Accounts Payable $211,752

Accounts Receivable 183,073

Inventory 328,992 Long Term Debt $305,629

Plant, Property and Equipment 235,230 Common Equity $540,170

Total $1,057,551 $1,057,551

Sales for year totaled $2,505,176 and Cost of Goods Sold was $1,584,339. At the same sales and COGS level, how much capital (cash) could Toro free up if it reduced its Inventory Days Outstanding by 20 days? What would be the resulting Debt/Equity ratio if Toro used that capital to buy back common stock? (Note: make sure you calculate inventory days outstanding to 2 decimal places).

Reference no: EM132795929

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