Which company will have the lower number of days to sell?
A) Company A whose cost of goods sold equals $1,000 and whose average inventory is $100.
B) Company B whose cost of goods sold equals $2,000 and whose average inventory is $100.
C) Company C whose cost of goods sold equals $2,000 and whose average inventory is $200.
D) There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

Company B has a higher cost of goods sold with the same average inventory as Company A, resulting in a higher inventory turnover ratio and thus fewer days to sell.

Which Company Will Have the Lower Number of Days to Sell