James, Inc. provides the following data: 2025 2024 Cash $132,000 $121,000 Accounts Receivable, Net 75,000 52,000 Merchandise Inventory 49,000 43,000 Property, Plant, and Equipment, Net 122,000 99,000 For the year ending December 31, 2025: Net Sales Revenue $451,000 Cost of Goods Sold (315,000) Gross Profit $136,000 Calculate the number of days' sales in inventory for 2025. (Use 365 days for any calculations.) A. 56.77 days B. 53.28 days C. 51.41 days D. 123.31 days

Question

contestada

Respuesta :

Kolawole845 Kolawole845 · Answer 1 · 2021-05-04T02:56:14+02:00

Answer:

Option A is correct

Days' sales in inventory= 56.77 days

Explanation:

The days' sales in inventory is the average length if days for which product remain in stock until they are sold. The shorter the days the better.

Days' sales in inventory = (closing stock/cost of goods sold) × 365 days

Days' sales in inventory= 49,000/315,000× 365 days= 56.77 days

Days' sales in inventory= 56.77 days

Answer Link