The records of Alberta Inc.included the following information: $$\begin{array} { l r }
\text { Cost of goods sold } & \$ 1,800,000 \
\text { Begirniring irventory } & 435,000 \
\text { Ending irventory } & 465,000
\end{array}$$ What is the number of days to sell?
A)91.25 days
B)94.30 days
C)88.16 days
D)182.50 days

Question

The records of Alberta Inc.included the following information: $$\begin{array} { l r } 
\text { Cost of goods sold } & \$ 1,800,000 \
\text { Begirniring irventory } & 435,000 \
\text { Ending irventory } & 465,000
\end{array}$$ What is the number of days to sell?
A)91.25 days
B)94.30 days
C)88.16 days
D)182.50 days

Quizplus · Accepted Answer

The number of days to sell, also known as the inventory turnover days, can be calculated using the formula: $$ \text{Days to Sell} = \left( \frac{\text{Average Inventory}}{\text{Cost of Goods Sold}} \right) \times 365 $$ where Average Inventory is $\frac{\text{Beginning Inventory} + \text{Ending Inventory}}{2}$. Plugging in the numbers: $$ \text{Average Inventory} = \frac{435,000 + 465,000}{2} = 450,000 $$ $$ \text{Days to Sell} = \left( \frac{450,000}{1,800,000} \right) \times 365 = 0.25 \times 365 = 91.25 $$ days.

The Records of Alberta Inc What Is the Number of Days to Sell? A)91

The Records of Alberta Inc What Is the Number of Days to Sell?
A)91