Pretty,Inc.provides the following data:

Calculate days' sales in inventory for 2017.(Round any intermediate calculations and your final answer to two decimal places. )
A)53.68
B)118.09
C)47.10
D)85.88

Question

Pretty,Inc.provides the following data:

Calculate days' sales in inventory for 2017.(Round any intermediate calculations and your final answer to two decimal places. )
A)53.68 
B)118.09 
C)47.10 
D)85.88

Quizplus · Accepted Answer

D)Inventory turnover ratio = Cost of Goods Sold / Average Merchandise Inventory =
$170,000 / [(55,000 + 25,000)/ 2] = $170,000 / $40,000 = 4.25 times
Days' sales in inventory = 365 / Inventory turnover ratio = 365 / 4.25 = 85.88

Pretty,Inc.provides the Following Data