The following information is available for Heller Company: $$\begin{array}{lr}\text{ Beginning inventory }& \$60,000\\ \text{ Cost of goods sold }& 640,000\\ \text{ Ending inventory }& 100,000\\ \text{ Sales revenue }& 1,000,000\end{array}$$ Instructions
Compute each of the following:
(a) Inventory turnover.
(b) Days in inventory.

Inventory Turnover

A metric that reveals the number of times a company's inventory is sold and restocked within a certain period.

Days in Inventory

A financial metric that indicates the average number of days a company takes to sell its entire inventory.

Ending Inventory

The amount of inventory available to be sold by the end of an accounting term.