Kelley Company provided the following account balances for 2018: Calculate the average number of days that inventory was held by Kelley Company during 2018.(Assume 365 days in a year.Round your intermediate calculations and final answer to two decimal places. )

Question

Kelley Company provided the following account balances for 2018:  Calculate the average number of days that inventory was held by Kelley Company during 2018.(Assume 365 days in a year.Round your intermediate calculations and final answer to two decimal places. )

Quizplus · Accepted Answer

D)Inventory Turnover:
Cost of goods sold / Average merchandise inventory
1,300,000 / 345,000 = 3.77
Days' sales in inventory: 365 days / Inventory turnover
365 / 3.77 = 96.82

Kelley Company Provided the Following Account Balances for 2018