Irastan Company,a retailer,had cost of goods sold of $250,000 last year.The beginning inventory balance was $28,000 and the ending inventory balance was $20,000.The company's average sale period was closest to:

Question

Quizplus · Accepted Answer

Average inventory balance = ($28,000 + $20,000)F1F1F1S1F1F1F10 2 = $24,000
Inventory turnover = Cost of goods sold F1F1F1S1F1F1F10 Average inventory balance
= $250,000 F1F1F1S1F1F1F10 $24,000 = 10.42
Average sale period = 365 days F1F1F1S1F1F1F10 Inventory turnover
= 365 days F1F1F1S1F1F1F10 10.42 = 35.03 days

Irastan Company,a Retailer,had Cost of Goods Sold of $250,000 Last