Anthony Thomas Candies (ATC) reported the following financial data for 2018 and 2017:
-The average days inventory for ATC (rounded) for 2018 is:
A) Less than 100 days.
B) 114 days.
C) 132 days.
D) 151 days.

Question

Anthony Thomas Candies (ATC) reported the following financial data for 2018 and 2017:  
-The average days inventory for ATC (rounded) for 2018 is:
A) Less than 100 days. 
B) 114 days. 
C) 132 days. 
D) 151 days.

Quizplus · Accepted Answer

Inventory turnover = $138,000 ÷ [($43,000 + 57,000) ÷ 2] = 2.76
365 ÷ 2.76 = 132 days

Anthony Thomas Candies (ATC) Reported the Following Financial Data for 2018