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Downtown Cafe has sales of $750,000, costs of goods sold of $450,000, inventory of $95,000, and accounts receivable of $60,000. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? A) 65.42 days B) 77.21 days c) 82.15 days D) 71.35 days E) 76.96 days

Downtown Cafe has sales of $750,000, costs of goods sold of $450,000, inventory of $95,000, and accounts receivable of $60,000. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? A) 65.42 days B) 77.21 days c) 82.15 days D) 71.35 days E) 76.96 days

Corporate Fin Focused Approach
Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter16: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 11P
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Downtown Cafe has sales of $750,000, costs of goods sold of $450,000, inventory of $95,000, and accounts receivable of $60,000. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? A) 65.42 days B) 77.21 days c) 82.15 days D) 71.35 days E) 76.96 days
Transcribed Image Text:Downtown Cafe has sales of $750,000, costs of goods sold of $450,000, inventory of $95,000, and accounts receivable of $60,000. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? A) 65.42 days B) 77.21 days c) 82.15 days D) 71.35 days E) 76.96 days
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