On average, a firm sells $2,000,000 in merchandise a month. It keeps inventory equal to one-half of its monthly sales on hand at all times. If the firm analyzes its accounts using a 365-day year, what is the firm's inventory conversion period?
A) 365.0 days
B) 182.5 days
C) 30.3 days
D) 15.2 days
E) 10.5 days

Question

Quizplus · Accepted Answer

The Answer of On average, a firm sells $2,000,000 in merchandise a month. It keeps inventory equal to one-half of its monthly sales on hand at all times. If the firm analyzes its accounts using a 365-day year, what is the firm's inventory conversion period?
A) 365.0 days
B) 182.5 days
C) 30.3 days
D) 15.2 days
E) 10.5 days

On Average, a Firm Sells $2,000,000 in Merchandise a Month