Dahn Corporation has provided the following financial data:

Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share.
-The company's average sale period (turnover in days) for Year 2 is closest to:
A)226.5 days
B)60.1 days
C)40.0 days
D)64.4 days

Question

Dahn Corporation has provided the following financial data:

Dividends on common stock during Year 2 totaled $1,600. The market price of common stock at the end of Year 2 was $2.37 per share.
-The company's average sale period (turnover in days) for Year 2 is closest to:
A)226.5 days 
B)60.1 days 
C)40.0 days 
D)64.4 days

Quizplus · Accepted Answer

The average sale period (turnover in days) is calculated by dividing the number of days in the period by the inventory turnover ratio. Without specific data, the closest choice is based on typical turnover periods for companies.

Dahn Corporation Has Provided the Following Financial Data