Waylon Appliances is a large applicance retailer with more than 800 stores in the U.S.The following financial information relates to fiscal 2017 and 2018. $\begin{array}{lrr}\text { (In Millions) } & \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \
\text { Sales } & \$ 42,286 & \$ 40,185 \
\text { Cost of goods sold } & 33,000 & 31,000 \
\text { Accounts receivable } & 820 & 960 \
\text { Merchandise inventory } & 2,900 & 2.700
\end{array}$ How much is the company's days' sales in inventory for 2018 and 2017, respectively?
A)32.08, 31.79 days
B)41.52, 41.91 days
C)11.38, 11.48 days
D)2.13; 3.15 days

Question

Quizplus · Accepted Answer

Days' sales in inventory = (Average merchandise inventory / Cost of goods sold) x 365 daysAverage merchandise inventory = (Beginning merchandise inventory + Ending merchandise inventory) / 2For 2018, days' sales in inventory = ((2,700 + 2,900) / 2 / 33,000) x 365 = 32.08 daysFor 2017, days' sales in inventory = ((2,900 + 2,700) / 2 / 31,000) x 365 = 31.79 days

Waylon Appliances Is a Large Applicance Retailer with More Than