Based on the following data for the current year, what is the number of days' sales in inventory? Net sales on account during year $476,874 Cost of goods sold during year 153,703 Accounts receivable, beginning of year 48,159 Accounts receivable, end of year 54,970 Inventory, beginning of year 39,766 Inventory, end of year 37,768 Do not round interim calculations. Round your final answer up to the nearest whole day. Select the correct answer. 122 days 92 days 4 days 365 days

Question

Business

Romeo Daniel

7 February, 19:48

Based on the following data for the current year, what is the number of days' sales in inventory? Net sales on account during year $476,874 Cost of goods sold during year 153,703 Accounts receivable, beginning of year 48,159 Accounts receivable, end of year 54,970 Inventory, beginning of year 39,766 Inventory, end of year 37,768 Do not round interim calculations. Round your final answer up to the nearest whole day. Select the correct answer. 122 days 92 days 4 days 365 days

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Answers (1)

Know the Answer?

Jenna Cooke · Answer 1

92 days

Explanation:

Sales in Inventory = Average Inventory / COGS x 365

where:

average inventory = (beginning + ending) / 2

Cost of goods sold 153,703

Beginning Inventory 39,766

Ending Inventory 37,768

Average = (39,766+37,768) / 2 = 38,767

(38,767 / 153,703) x 365 = 92.06 = 92 days

In average the company sales all his inventory every 92 days.