The average days inventory for ATC (rounded)for 2016 is:
A)Less than 100 days.
B)114 days
C)132 days.
D)151 days.

Question

Quizplus · Accepted Answer

The formula for calculating days inventory is (365 days / inventory turnover ratio). 
Using the information given in the question, 
Inventory turnover ratio for ATC in 2016 = 2.77. 
Therefore, Days inventory = 365/2.77 = 131.6 days which is rounded to 132 days. Hence the best choice is C) 132 days.

The Average Days Inventory for ATC (Rounded)for 2016 Is