Kaufman's Department Store had net sales of $20 million and cost of goods sold of $14 million for the year. The average inventory for the year was $4 million. What was the average number of days in inventory?
A) 46
B) 104
C) 92
D) 52

Question

Quizplus · Accepted Answer

Average number of days in inventory = (Average inventory / Cost of goods sold) x 365 
= (4 million / 14 million) x 365 
= 104.29 
≈ 92 days (rounded to the nearest day)

Kaufman's Department Store Had Net Sales of $20 Million and Cost