QuestionJune 6, 2025

McHenry Sales has sales of 938,300 cost of goods sold of 688,050 and inventory of 98,880 How long, on average, does it take the firm to sell its inventory? Multiple Choice 52.45 days 59.01 days 61.10 days 48.68 days

McHenry Sales has sales of 938,300 cost of goods sold of 688,050 and inventory of 98,880 How long, on average, does it take the firm to sell its inventory? Multiple Choice 52.45 days 59.01 days 61.10 days 48.68 days
McHenry Sales has sales of 938,300 cost of goods sold of 688,050 and inventory of 98,880 How long, on average, does it take the firm to sell its inventory? Multiple Choice 52.45 days 59.01 days 61.10 days 48.68 days

Solution
4.0(282 votes)

Answer

52.45 days Explanation 1. Calculate Inventory Turnover **Inventory Turnover = \frac{\text{Cost of Goods Sold}}{\text{Inventory}}**. Substitute the values: \frac{688,050}{98,880} = 6.96. 2. Calculate Days in Inventory **Days in Inventory = \frac{365}{\text{Inventory Turnover}}**. Substitute the value: \frac{365}{6.96} = 52.45 days.

Explanation

1. Calculate Inventory Turnover<br /> **Inventory Turnover = \frac{\text{Cost of Goods Sold}}{\text{Inventory}}**. Substitute the values: $\frac{688,050}{98,880} = 6.96$.<br />2. Calculate Days in Inventory<br /> **Days in Inventory = \frac{365}{\text{Inventory Turnover}}**. Substitute the value: $\frac{365}{6.96} = 52.45$ days.
Click to rate:

Similar Questions