Based on the following data for the current year, what is the number of days' sales in inventory?
A) 51.2
B) 44.4
C) 6.5
D) 7.5

Name: Based on the following data for the current year, what is the number of days' sales in inventory? A) 51.2 B) 44.4 C) 6.5 D) 7.5
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Question

Based on the following data for the current year, what is the number of days' sales in inventory? 
A) 51.2 
B) 44.4 
C) 6.5 
D) 7.5

Quizplus · Accepted Answer

Number of days' sales in inventory = (Inventory / Cost of goods sold) x 365

Inventory = $120,000
Cost of goods sold = $690,000

Number of days' sales in inventory = (120,000 / 690,000) x 365 = 51.2 days. Therefore, the answer is A.

Based on the Following Data for the Current Year, What