Vijay You have the following balance sheet information:2022InventoryAccounts ReceivableAccounts PayableBeginning$2,900$1,300$975Ending Average$3,750$1,500$1,100$3,325$1,400$1,038Suppose further that sales during the year are $13,400 (of which 75% is sold on credit) and the cost of goods sold is $10811 (of which 85% is purchased via an accountspayable)Calculate the inventory cycle (in days).S

The inventory turnover ratio is used to measure the number of times a business is able to sell and…

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Calculate the inventory cycle

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....

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Question

Vijay

You have the following balance sheet information:
2022
Inventory
Accounts Receivable
Accounts Payable
Beginning
$2,900
$1,300
$975
Ending Average
$3,750
$1,500
$1,100
$3,325
$1,400
$1,038
Suppose further that sales during the year are $13,400 (of which 75% is sold on credit) and the cost of goods sold is $10811 (of which 85% is purchased via an accounts
payable)
Calculate the inventory cycle (in days).
S

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