$\begin{array}{llcc}
\text { Net sales reverue } &\$345,000 \
\text {Cost of goods sold } &\$205,000\
\text { Average accourts receivable } &\$32,500\
\text { Average irventory } &\$9,450\
\text { Average plart, property ard equipment } &\$81,250\
\text { Average total assets } &\$130,000\
\end{array}$

-According to the above table.Calculate the company's days to sell ratio for the current year?
A)16.83
B)21.69
C)5.94
D)26.53

Question

$\begin{array}{llcc}
  \text { Net sales reverue } &\$345,000  \
 \text {Cost of goods sold  } &\$205,000\
 \text { Average accourts receivable } &\$32,500\
 \text { Average irventory } &\$9,450\
 \text { Average plart, property ard equipment } &\$81,250\
 \text { Average total assets } &\$130,000\
\end{array}$
 
-According to the above table.Calculate the company's days to sell ratio for the current year?
A)16.83
B)21.69
C)5.94
D)26.53

Quizplus · Accepted Answer

The days to sell ratio, also known as the inventory turnover days, is calculated by dividing the average inventory by the cost of goods sold (COGS) and then multiplying by 365 days. Using the given data: $$ \text{Days to Sell Ratio} = \left( \frac{\$9,450}{\$205,000} \right) \times 365 = 16.83 $$ days.

-According to the Above Table