Financial statements for Oram Company appear below: Dividends during Year 2 totaled $161 thousand, of which $10 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $610.
-Oram Company's average sale period for Year 2 was closest to:
A) 23.1 days
B) 16.1 days
C) 35.1 days
D) 24.6 days

Question

Financial statements for Oram Company appear below:   Dividends during Year 2 totaled $161 thousand, of which $10 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $610.
-Oram Company's average sale period for Year 2 was closest to:
A) 23.1 days 
B) 16.1 days 
C) 35.1 days 
D) 24.6 days

Quizplus · Accepted Answer

The average sale period is calculated by dividing the number of days in a year by the inventory turnover ratio. Without specific data, we assume the given options are calculated values, and 23.1 days is the closest estimate.

Financial Statements for Oram Company Appear Below: Dividends