We recommend applying an estimated “days” factor to the appropriate income statement items in order to calculate an accurate estimate of the appropriate working capital closing balances. For example, the closing inventory balance for each year can be calculated by dividing the cost of sales amount of the appropriate year by 365 and multiplying the result by the estimated days of inventory kept on hand.

CopyFinancial > We recommend applying an estimated “days” factor to the appropriate income statement items in order to calculate an accurate estimate of the appropriate working capital closing balances. For example, the closing inventory balance for each year can be calculated by dividing the cost of sales amount of the appropriate year by 365 and multiplying the result by the estimated days of inventory kept on hand.