Agnes Company reported the following data: $$\begin{array} { l r }
\text { Quick assets } & \$ 55,000 \
\text { Current assets } & 150,000 \
\text { Total liabilities } & 300,000 \
\text { Average net receivables } & 12,600 \
\text { Beginning inventory } & 38,000 \
\text { Long-term liabilities } & 200,000 \
\text { Net credit sales } & 126,000 \
\text { Cost of goods sold } & 84,000 \
\text { Ending inventory } & 46,000
\end{array}$$ What was the average days' supply in inventory?
A) 165.9
B) 202.7
C)182.5
D)121.7

Question

Agnes Company reported the following data: $$\begin{array} { l r } 
\text { Quick assets } & \$ 55,000 \
\text { Current assets } & 150,000 \
\text { Total liabilities } & 300,000 \
\text { Average net receivables } & 12,600 \
\text { Beginning inventory } & 38,000 \
\text { Long-term liabilities } & 200,000 \
\text { Net credit sales } & 126,000 \
\text { Cost of goods sold } & 84,000 \
\text { Ending inventory } & 46,000
\end{array}$$ What was the average days' supply in inventory?
A) 165.9
B) 202.7
C)182.5
D)121.7

Quizplus · Accepted Answer

The average inventory is $(38,000 + 46,000) / 2 = 42,000$. The inventory turnover is $84,000 / 42,000 = 2$. The average days' supply in inventory is $365 / 2 = 182.5$.

Agnes Company Reported the Following Data What Was the Average Days' Supply in Inventory? A) 165

Agnes Company Reported the Following Data What Was the Average Days' Supply in Inventory?
A) 165