Luther Corporation's total sales for 2009 were $610.1,and gross profit was $109.0.Inventory days for 2009 is closest to:
A)27.5
B)33.4
C)153.7
D)10.9

Name: Luther Corporation's total sales for 2009 were $610.1,and gross profit was $109.0.Inventory days for 2009 is closest to: A)27.5 B)33.4 C)153.7 D)10.9
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Question

Quizplus · Accepted Answer

B)Inventory Days = Inventory/Average Daily Cost of Sales
Average Daily Cost of Sales = (Sales - gross profit)/365
Inventory Days = 45.9/((610.1 - 109)/365)= 33.4

Luther Corporation's Total Sales for 2009 Were $610