Home Depot’s annual turns are 5.74, its Cost of Goods Sold (COGS) is $48.15 Billion, and its gross margin is 33%. Recall, gross margin = (Revenue – COGS) / Revenue. What is the average inventory it holds in $ Billion? Blank 1. Calculate the answer by read surrounding text.

The average inventory held by Home Depot is $12.52 Billion.

Explanation:

The following are given in the question:

Inventory turnover = 5.74

Cost of Goods Sold (COGS) = $48.15 Billion

Gross margin  = 33%, or 0.33

We can obtain revenue using the following formula given in the question:

Gross margin = (Revenue – COGS) / Revenue (1)

Substituting relevant values into equation (1) and solve for Revenue, we have:

0.33 = (Revenue – $48.15) / Revenue

0.33Revenue = Revenue – $48.15

Revenue - 0.33Revenue = $48.15

Revenue(1 - 0.33) = $48.15

Revenue = $48.15 / (1 - 0.33)

Revenue = $48.15 / 0.67

Revenue = $71.87 Billion

The average inventory can now be calculated using the formula for calculating the Inventory turnover as follows:

Inventory turnover rate = Revenue / Average inventory (2)

Substituting relevant values into equation (2) and solve for Average inventory, we have:

5.74 = $71.87 / Average inventory

Average inventory * 5.74 = $71.87

Average inventory = $71.87 / 5.74 = $12.52 Billion

Therefore, the average inventory held by Home Depot is $12.52 Billion.

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number