Financial Accounting: Number of days to sell?

Question

Sales Revenue $665,000
Ending inventory 73,000
Cost of Goods Sold 530,000
Beginning inventory 63,000

What is the number of days to sell? (Round intermediate calculations to 2 decimal places.)
37.3 days
40.1 days
46.9 days
50.3 days

Answer 1

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Answer 2

Hello Becky,

 

"The number of of days to sell," is the number of days that it will take a company to sell all of its inventory.

 

This tells them about their cash flow.

 

 

Number of days to sell = Ending inventory/Cost of goods sold X 365 =   50.3

 

 

Happy to be of help!

Good luck in your studies!