Based on this information: And given the following selected balance sheet inform

Question

Based on this information:

And given the following selected balance sheet information for the same company:

Calculate the number of days sales in inventory for the year 20X2 (Round to the nearest whole number of days).

a. 47 days

b. 58 days

c. 108 days

d. 115 days

e. none of the above

I think im missing something because the answers ive gotten have been none of the above. Any help is appreciated! thank you

20X1 20X2 Net Sales Revenues $200,000 $250,000 Less: Cost of Goods Sold $120,000 $135,000 Gross Margin $80,000 $115,000 Less: Operating Expenses $60,000 $70,000 Net Income $20,000 $35,000

Explanation / Answer

Number of days sales in inventory for the year 20X2 = (Inventory/ Cost of goods sold) *365

= ($50000 / $135000) *365

=135.19 i.e 136 days

Hence, the right answer is e. none of the above

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