Financial statements for Maraby Corporation appear below: Maraby Corporation's average sale period for Year 2 was closest to:

Question

Financial statements for Maraby Corporation appear below:   Maraby Corporation's average sale period for Year 2 was closest to:

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold ÷ Average inventory balance = $1,370 ÷ $145* = 9.4 (rounded)
*Average inventory balance = ($140 + $150)÷ 2 = $145
Average sale period = 365 days ÷ Inventory turnover (see above)= 365 days ÷ 9.4 = 38.8 days (rounded)

Financial Statements for Maraby Corporation Appear Below: Maraby