Dahn Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. The company's average sale period (turnover in days)for Year 2 is closest to:

Question

Dahn Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $1,600.The market price of common stock at the end of Year 2 was $2.37 per share. 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*
= $850,000 ÷ $140,000 = 6.07 (rounded)
*Average inventory =
($150,000 + $130,000)÷ 2 = $140,000
Average sale period = 365 days ÷ Inventory turnover
= 365 days ÷ 6.07 = 60.1 days (rounded)

Dahn Corporation Has Provided the Following Financial Data