Zhang Company reported Cost of goods sold of $835,000,ending Inventory of $41,750,and Net sales of $2,338,000.The Days' sales in inventory (rounded to whole days)is:

Question

Quizplus · Accepted Answer

Days' sales in inventory is calculated as (Ending Inventory / Cost of Goods Sold) * 365. Using the given figures: ($41,750 / $835,000) * 365 = 18.2, which rounds to 18 days.

Zhang Company Reported Cost of Goods Sold of $835,000,ending Inventory