The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal) : Item/Account 2018 2017 Cash $35,000 $24,000 Accounts Receivable 56,000 52,000 Inventory 58,000 44,000 Current Liabilities 76,000 42,000 Net Sales (all credit) 550,000 485,000 Cost of Goods Sold 290,000 265,000 Use this information to determine the number of days in inventory for 2018: (Use a 365 day year. Round & enter your answers to one decimal place and enter the value.)

Question

Business

Jacey Goodman

7 December, 05:13

The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal) : Item/Account 2018 2017 Cash $35,000 $24,000 Accounts Receivable 56,000 52,000 Inventory 58,000 44,000 Current Liabilities 76,000 42,000 Net Sales (all credit) 550,000 485,000 Cost of Goods Sold 290,000 265,000 Use this information to determine the number of days in inventory for 2018: (Use a 365 day year. Round & enter your answers to one decimal place and enter the value.)

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Answers (1)

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Joselyn Rodgers · Answer 1

The number of days in inventory for 2018 is 64.1 days

Explanation:

The formula for computing the number of days in inventory is shown below:

= (Average inventory : Cost of good sold) * 365 days

where,

Average inventory = (Opening inventory + ending inventory) : 2

= ($58,000 + $44,000) : 2

= $51000

Now put the values on the formula which is shown above.

= ($51000 : $290,000) * 365 days

= 64.1 days

Thus, the number of days in inventory for 2018 is 64.1 days