Sun Concepts sells and installs solar energy products.Information from the financial statements for the last two years revealed the following: $\begin{array}{cccc}
& \text { Beginning Inventory } & \text { Ending Inventory } & \text { Cost of Goods Sold } \
\text { Year 1 } & \$ 90,000 & \$ 130,000 & \$ 605,000 \
\text { Year 2 } & 130,000 & 110,000 & 720,000
\end{array}$ The number of days to sell in Year 2 was approximately:

Question

Sun Concepts sells and installs solar energy products.Information from the financial statements for the last two years revealed the following: $\begin{array}{cccc} 
& \text { Beginning Inventory } & \text { Ending Inventory } & \text { Cost of Goods Sold } \
\text { Year 1 } & \$ 90,000 & \$ 130,000 & \$ 605,000 \
\text { Year 2 } & 130,000 & 110,000 & 720,000
\end{array}$ The number of days to sell in Year 2 was approximately:

Quizplus · Accepted Answer

Days to sell inventory = (Average inventory / Cost of goods sold) x 365 daysAverage inventory = (Beginning inventory + Ending inventory) / 2= (130,000 + 110,000) / 2= 120,000Days to sell inventory = (120,000 / 720,000) x 365 days= 61 days

Sun Concepts Sells and Installs Solar Energy Products The Number of Days to Sell in Year 2 Was