Based on the following data for the current year, what is the number of days' sales in inventory? $\begin{array}{ll}
\$ 1,204,500 & \text { Net sales on account during year } \
657,000 & \text { Cost of merchandise sold churing year } \
75,000 & \text { Accounts receivable, begining of year } \
85,000 & \text { Accounts receivable, end of year } \
81,600 & \text { Inventory, beginning of year } \
98,600 & \text { Inventory, end of year }
\end{array}$
A) 50.1
B) 45.3
C) 24.7
D) 29.9

Question

Quizplus · Accepted Answer

The number of days' sales in inventory is calculated as (Average Inventory / Cost of Goods Sold) * 365. The average inventory is (81,600 + 98,600) / 2 = 90,100. Thus, (90,100 / 657,000) * 365 = 50.1 days.

Based on the Following Data for the Current Year, What