Inventory days for 2017 = 60 days
Explanation:
Inventory days = ![\frac{365}{Inventory\ Turnover}](/tpl/images/0227/3812/18633.png)
For this, firstly we will calculate average inventory.
Average Inventory = ![\frac{Starting\ Inventory + Closing\ Inventory}{2}](/tpl/images/0227/3812/f4108.png)
Here, starting inventory = $39,490
Closing inventory = $37,650
Average Inventory = ![\frac{39,940 + 37,650}{2} = 38,795](/tpl/images/0227/3812/88cf6.png)
Inventory Turnover = ![\frac{Cost\ of\ goods\ sold}{Average\ Inventory}](/tpl/images/0227/3812/7bfb4.png)
= ![\frac{235,600}{38,795} = 6.0729](/tpl/images/0227/3812/2b723.png)
Inventory days = ![\frac{365}{6.0729} = 60.10](/tpl/images/0227/3812/bb025.png)
Rounded inventory days = 60 days.