Financial statements for Marcell Company appear below:
-Marcell Company's average sale period for Year 2 was closest to:
A)15.7 days
B)25.8 days
C)36.9 days
D)22.6 days

Question

Financial statements for Marcell Company appear below:  
-Marcell Company's average sale period for Year 2 was closest to:
A)15.7 days 
B)25.8 days 
C)36.9 days 
D)22.6 days

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold F1F1F1S1F1F1F10 Average inventory balance = $1,780 F1F1F1S1F1F1F10 $180* = 9.9
*Average inventory balance = ($180 + $180)F1F1F1S1F1F1F10 2 = $180
Average sale period = 365 days F1F1F1S1F1F1F10 Inventory turnover (see above)= 365 days F1F1F1S1F1F1F10 9.9 = 36.9 days

Financial Statements for Marcell Company Appear Below