$$\begin{array} { | l | r | r | }
\hline & \text { Year 2 } & { \text { Year 1 } } \
\hline \text { Merchandise inventory } & 271,000 & 253,500 \
\hline \text { Cost of goods sold } & 486,400 & 433,100 \
\hline
\end{array}$$
-Refer to the following selected financial information from Graceworks,Corp.Compute the company's days' sales in inventory for Year 2.(Use 365 days a year.)

A) 203.4.
B) 228.4.
C) 179.5.
D) 215.1.
E) 113.3.

Question

$$\begin{array} { | l | r | r | } 
\hline & \text { Year 2 } & { \text { Year 1 } } \
\hline \text { Merchandise inventory } & 271,000 & 253,500 \
\hline \text { Cost of goods sold } & 486,400 & 433,100 \
\hline
\end{array}$$
-Refer to the following selected financial information from Graceworks,Corp.Compute the company's days' sales in inventory for Year 2.(Use 365 days a year.)

A) 203.4.
B) 228.4.
C) 179.5.
D) 215.1.
E) 113.3.

Quizplus · Accepted Answer

Days' sales in inventory = (Merchandise inventory / Cost of goods sold) * 365 days= (271,000 / 486,400) * 365 days= 203.4 days

-Refer to the Following Selected Financial Information from Graceworks,Corp