Dieringer Corporation's most recent balance sheet and income statement appear below:
-The average sale period for Year 2 is closest to:
A)36.9 days
B)248.0 days
C)22.3 days
D)32.8 days

Question

Dieringer Corporation's most recent balance sheet and income statement appear below:  
-The average sale period for Year 2 is closest to:
A)36.9 days 
B)248.0 days 
C)22.3 days 
D)32.8 days

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold F1F1F1S1F1F1F10 Average inventory balance
= $890 F1F1F1S1F1F1F10 $90* = 9.89
*Average inventory balance = ($80 + $100)F1F1F1S1F1F1F10 2 = $90
Average sale period = 365 days F1F1F1S1F1F1F10 Inventory turnover
= 365 days F1F1F1S1F1F1F10 9.89 = 36.9 days

Dieringer Corporation's Most Recent Balance Sheet and Income Statement Appear