How is inventory turnover calculated

Question

Question 1: How is inventory turnover calculated?

Question 2: Explain how inventory turnover affects the amount of cash that must be invested in inventory.

Question 3: How is accounts receivable turnover calculated?

Question 4: Explain how accounts receivable turnover affects the amount of cash that must be invested in accounts receivable.

Question 5: Assuming that a company has $365 million in annual sales, and a gross margin of 20%, how much investment will each additional day of sales in inventory require?

Question 6: Assuming that a company has $365 million in annual sales, and a gross margin of 20%, how much investment will each additional day of sales in accounts receivable require?