SQC Inc.had sales of $3,000,000, cost of merchandise sold of $2,100,000, and average inventory of $140,000.What is SQC Inc.'s days' sales in inventory? (Round the answer to the nearest whole number.)

Question

Quizplus · Accepted Answer

Days' sales in inventory is calculated as (Average Inventory / Cost of Goods Sold) * 365. For SQC Inc., it is ($140,000 / $2,100,000) * 365 = 24 days.

SQC IncHad Sales of $3,000,000, Cost of Merchandise Sold of $2,100,000