Answer: Hoover's days in inventory in 2011 was 50 days.
Explanation:
Given that,
Beginning inventory = $110000
Ending inventory = $70000
Cost of goods sold = $660000
Sales = $900000
Average Inventory = [tex]\frac{Beginning\ Inventory + Ending\ Inventory}{2}[/tex]
= [tex]\frac{110000+70000}{2}[/tex]
= 90000
Inventory Turnover = [tex]\frac{cost\ of\ goods\ sold}{Average\ Inventory}[/tex]
= [tex]\frac{660000}{90000}[/tex]
= 7.33
Hoover's days in inventory in 2011 = [tex]\frac{Number\ of\ days\ in\ a\ year}{Inventory\ Turnover}[/tex]
= [tex]\frac{365}{7.33}[/tex]
= 50 Days
