What is the length of gateway operating cycle

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A recent annual report of Gateway $2000 , Inc. , shows : cost of goods sold. $4,072; inventory at the beginning of the year, $225; and inventory at the end of the year. $278. (These dollar amounts are in millions)

Problem a. Compute the inventory turnover rate for the year ( round to the nearest tenth)

Problem b. Using the assumption of 365 days in a year , compute the number of days required for the pany to sell the amount of its average inventory ( round to the nearest day)

Problem c. Assume that an average of 30 days is required for Gateway to collect its accounts receivable. What is the length of Gateway's operating cycle?

Reference no: EM132795810

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