A firm has sales of $710,000. The cost of goods sold is equal to 57 percent of s
ID: 2769304 • Letter: A
Question
A firm has sales of $710,000. The cost of goods sold is equal to 57 percent of sales. The firm has an average inventory of $23,940. How many days on average does it take the firm to sell its inventory?
a. 12.31 days
b. 16.90 days (*picked and was wrong answer*)
c. 15.29 days
d. 21.59 days
e. 10.77 days
A firm has sales of $710,000. The cost of goods sold is equal to 57 percent of sales. The firm has an average inventory of $23,940. How many days on average does it take the firm to sell its inventory?
a. 12.31 days
b. 16.90 days (*picked and was wrong answer*)
c. 15.29 days
d. 21.59 days
e. 10.77 days
Explanation / Answer
Details Amt $ Sales 710,000 Cost of Goods Sold@57% of sales = 404,700 Average Inventory 23,940 Inventory Turnover =COGS/Avg Inventory= 16.90 Average sale period=365/16.90= 21.59 days So Answer is d. 21.59 days
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