The average days inventory for ATC for 2009 is:
A)Less than 100 days.
B)114 days.
C)132 days.
D)151 days.Inventory turnover = $138,000 [($43,000 + 57,000) 2] = 2.76 365 2.76 = 132 days

Question

Quizplus · Accepted Answer

Using the formula for average days inventory, we get:

Average Days Inventory = 365 / Inventory Turnover

Plug in the values given in the question, we get:

Average Days Inventory = 365 / 2.76 = 132

Therefore, the average days inventory for ATC for 2009 is 132 days, which corresponds to option (C).

The Average Days Inventory for ATC for 2009 Is