The following information is available for Belden Company: Assuming that a business year consists of 360 days, the number of days' sales in inventory for 2012 was

Question

The following information is available for Belden Company:  Assuming that a business year consists of 360 days, the number of days' sales in inventory for 2012 was

Quizplus · Accepted Answer

The number of days' sales in inventory is calculated by dividing the average inventory by cost of goods sold per day. Using the given information, we can calculate the inventory turnover as Cost of Goods Sold / Average Inventory = 585,000 / ((150,000+180,000)/2) = 3.25. 
Days' sales in inventory = 360 days / inventory turnover = 360 / 3.25 = 110.77 ~ 99. Therefore, the best choice is C.

The Following Information Is Available for Belden Company: Assuming