Based on the following data for the current year, what is the number of days' sales in inventory (rounded to the next whole day)? $\begin{array}{ll}
\$ 1,204,000 & \text { Net sales on account during the ye ar } \
630,000 & \text { Cost of merchandise sold chring the year } \
75,000 & \text { Accounts receivable, beginning of year } \
85,000 & \text { Accounts receivable, end of year } \
81,600 & \text { Inventory, beginning of year } \
98,600 & \text { Inventory, end of year }
\end{array}$

A) 58
B) 48
C) 53
D) 30

Question

Based on the following data for the current year, what is the number of days' sales in inventory (rounded to the next whole day)? $\begin{array}{ll}
\$ 1,204,000 & \text { Net sales on account during the ye ar } \
630,000 & \text { Cost of merchandise sold chring the year } \
75,000 & \text { Accounts receivable, beginning of year } \
85,000 & \text { Accounts receivable, end of year } \
81,600 & \text { Inventory, beginning of year } \
98,600 & \text { Inventory, end of year }
\end{array}$

A) 58
B) 48
C) 53
D) 30

Quizplus · Accepted Answer

The number of days' sales in inventory is calculated as (Average Inventory / Cost of Goods Sold) * 365. The average inventory is (81,600 + 98,600) / 2 = 90,100. Thus, (90,100 / 630,000) * 365 = 52.14, which rounds to 53 days.

Based on the Following Data for the Current Year, What