General Account Query During the current year, Carl Equipment Stores had net sales of $540million, a cost of goods sold of $264 million, average accountsreceivable of $64 million, and an average inventory of $44 million.Assuming a 365-day year, the average number of days required for CarlEquipment to sell its inventory is:a. 182.5 days.b. 89 days.c. 30.4 days.d. 60.8 days.

Step 1: Definition of Inventory Days (Days Sales in Inventory)The average number of days required to…

Answered: During the current year, Carl Equipment…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 14P

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Question related to financial accounting: During the current year, Carl Equipment Stores had net sales of $540 million, a cost of goods sold of $367 million, average accounts receivable of $64 million, and an average inventory of $53 million. Assuming a 365-day year, the average number of days required for Carl Equipment to sell its inventory is?
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For its most recent year, a company had Sales (all on credit) of $830,000 and a Cost of Goods Sold of $525,000. At the beginning of the year, its Accounts Receivable were $80,000 and its Inventory was $100,000. At the end of the year, its Accounts Receivable were $86,000 and its Inventory was $110,000. The inventory turnover ratio for the year was: a. 4.8 b. 5.0 c. 7.9
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