Hartzog Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The average sale period for Year 2 is closest to:
A)60.0 days
B)35.1 days
C)62.4 days
D)213.6 days

Question

Hartzog Corporation's most recent balance sheet and income statement appear below:   Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The average sale period for Year 2 is closest to:
A)60.0 days 
B)35.1 days 
C)62.4 days 
D)213.6 days

Quizplus · Accepted Answer

Average inventory balance = ($130 + $140)F1F1F1S1F1F1F10 2 = $135
Inventory turnover = Cost of goods sold F1F1F1S1F1F1F10 Average inventory balance
= $790 F1F1F1S1F1F1F10 $135 = 5.85
Average sale period = 365 days F1F1F1S1F1F1F10 Inventory turnover
= 365 days F1F1F1S1F1F1F10 5.85 = 62.4 days

Hartzog Corporation's Most Recent Balance Sheet and Income Statement Appear