Anthony Corporation reported the following amounts for the year:
$\begin{array}{lr}
\text { Net sales } & \$ 296,000 \
\text { Cost of goods sold } & 138,000 \
\text { Average inventory } & 50,000
\end{array}$
Anthony's average days in inventory is:

Question

Anthony Corporation reported the following amounts for the year: 
$\begin{array}{lr}
\text { Net sales } & \$ 296,000 \
\text { Cost of goods sold } & 138,000 \
\text { Average inventory } & 50,000
\end{array}$
Anthony's average days in inventory is:

Quizplus · Accepted Answer

Average days in inventory is calculated as (Average Inventory / Cost of Goods Sold) * 365. For Anthony Corporation, it is (50,000 / 138,000) * 365 = 132 days.