The average days inventory for ATC (rounded) for 2013 is:
A)Less than 100 days.
B)114 days
C)132 days.
D)151 days.

Question

Quizplus · Accepted Answer

To calculate the average days inventory, we use the formula:

Average days inventory = (Average inventory / Cost of goods sold) x 365

For 2013, the average inventory was $8,925, and the cost of goods sold (COGS) was $2,247, so:

Average days inventory = ($8,925 / $2,247) x 365 = 1,455

Rounding this to the nearest whole number gives us 132. Therefore, the correct answer is C) 132 days.

The Average Days Inventory for ATC (Rounded) for 2013 Is