Tops N Bottoms Corp.reported sales for 2018 of $50 million.Tops N Bottoms listed $4 million of inventory on its balance sheet.Using a 365-day year,how many days did Tops N Bottoms' inventory stay on the premises? How many times per year did Tops N Bottoms' inventory turn over?
A) 29.2 days, 12.5 times, respectively
B) 12.5 days, 29.2 times, respectively
C) 0.08 days, 12.5 times, respectively
D) 29.2 days, 0.0345 times, respectively

Question

Quizplus · Accepted Answer

Days' sales in inventory = 11ea8218_2a33_91ce_bbd8_75a18933bea0_TB1326_11 = 29.2 days
Inventory turnover ratio = 11ea8218_2a33_b8df_bbd8_89743abe6a7e_TB1326_11 = 12.5 times