Ribaudo Corporation has provided the following financial data from its balance sheet and income statement: The company's average sale period (turnover in days)for Year 2 is closest to:

Question

Ribaudo Corporation has provided the following financial data from its balance sheet and income statement:  The company's average sale period (turnover in days)for Year 2 is closest to:

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold ÷ Average inventory*
= $700,000 ÷ $176,500 = 3.97 (rounded)
*Average inventory =
($173,000 + $180,000)÷ 2 = $176,500
Average sale period = 365 days ÷ Inventory turnover
= 365 days ÷ 3.97 = 91.9 days (rounded)

Ribaudo Corporation Has Provided the Following Financial Data from Its