Assuming a 365-day year,the average number of days required for Carlin Equipment to sell its inventory is: (Round your final answer to one decimal place)
A)36.5 days.
B)45.6 days.
C)54.4 days.
D)292.0 days.

Question

Quizplus · Accepted Answer

To find the average number of days required for Carlin Equipment to sell its inventory, we need to divide the number of days in a year (365) by the inventory turnover ratio.

Inventory turnover ratio = Cost of goods sold / Average inventory

From the information given in the problem, we know that Carlin Equipment's cost of goods sold for the year was $10,000,000 and its average inventory was $4,560,000.

Inventory turnover ratio = $10,000,000 / $4,560,000 = 2.19

Now we can calculate the average number of days required for Carlin Equipment to sell its inventory:

Days in a year / Inventory turnover ratio = 365 / 2.19 = 166.7 days

Therefore, the correct answer is B) 45.6 days (rounded to one decimal place).

Assuming a 365-Day Year,the Average Number of Days Required for Carlin