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25 November, 10:33

Beckenworth had cost of goods sold of $9,421 million, ending inventory of $2,089 million, and average inventory of $1,965 million. Its days' sales in inventory equals: (Use 365 days a year.)

A) 0.21.

B) 4.51.

C) 4.79.

D) 76.1 days.

E) 80.9 days.

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  1. 25 November, 11:00
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    Answer

    E) 80.9 days

    Explanation

    Days Sales of Inventory = (Ending Inventory / Cost of Goods Sold) x 365

    Where,

    Ending Inventory = $2,089 million

    Cost of Goods Sold = $9,421 million

    Days Sales of Inventory = (2089 / 9421) x 365 = 80.9 days
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