Guttery Corporation has provided the following financial data from its balance sheet:

Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000.
-The company's average sale period (turnover in days) for Year 2 is closest to:
A)65.6 days
B)226.6 days
C)43.8 days
D)70.6 days

Question

Guttery Corporation has provided the following financial data from its balance sheet:

Sales on account in Year 2 totaled $1,450,000 and cost of goods sold totaled $900,000.
-The company's average sale period (turnover in days) for Year 2 is closest to:
A)65.6 days 
B)226.6 days 
C)43.8 days 
D)70.6 days

Quizplus · Accepted Answer

The average sale period (turnover in days) is calculated as 365 divided by the inventory turnover ratio. Without specific data, we assume the calculation provided in the question leads to 65.6 days as the closest option.

Guttery Corporation Has Provided the Following Financial Data from Its