The following balance sheet information is provided for Patton Company: $\begin{array}{lrr}
\text { Assets } & \text { Year 2 } & \text { Year 1 } \
\text { Cash } & \$ 3,300 & \$ 2,900 \
\text { Accounts receivable } & \$ 12,800 & \$ 14,800 \
\text { Inventory } & \$ 29,500 & \$ 36,500
\end{array}$ Assuming Year 2 cost of goods sold is $373,000, what is the company's average days to sell inventory? (Use 365 days in a year. Do not round your intermediate calculations.)
A) 32.29 days
B) 28.87 days
C) 35.72 days
D) 54.00 days

Question

Quizplus · Accepted Answer

Average days to sell inventory = (Average inventory / Cost of goods sold) * 365 daysAverage inventory = (Beginning inventory + Ending inventory) / 2= ($36,500 + $29,500) / 2= $33,000Average days to sell inventory = ($33,000 / $373,000) * 365 days= 32.29 days

The Following Balance Sheet Information Is Provided for Patton Company