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.

Question

Business

Isabell Todd

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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Answers (1)

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Hobbs · Answer 1

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

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.

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.