Burnside's has accounts receivable of $33,700,inventory of $54,200,sales of $364,200,and cost of goods sold of $193,400.How long does it take the firm to sell its inventory and collect payment on the sale?
A)128.14 days
B)88.09 days
C)163.78 days
D)136.06 days
E)154.08 days

Question

Quizplus · Accepted Answer

Inventory turnover = $193,400/$54,200 = 3.57Days in inventory = 365/3.57 = 102.29 daysAccounts receivable turnover = $364,200/$33,700 = 10.81Days' sales in receivables = 365/10.81 = 33.77 daysTotal days in inventory and receivables = 102.29 + 33.77 = 136.06 days

Burnside's Has Accounts Receivable of $33,700,inventory of $54,200,sales of $364,200,and