Riley's Gear Shop reports the following financial data for the year: • Sales $3,250 (all on credit) = Cost of Goods Sold (COGS) = $2,600 Ending Inventory = $520 . Accounts Receivable = $490 Required: How many days on average does it take Riley's to sell its inventory?

Riley's Gear Shop reports the following financial data for the year: • Sales $3,250 (all on credit) = Cost of Goods Sold (COGS) = $2,600 Ending Inventory = $520 . Accounts Receivable = $490 Required: How many days on average does it take Riley's to sell its inventory?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 5P: A chain of appliance stores, APP Corporation, purchases inventory with a net price of 500,000 each...

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Question

I am looking for the correct answer to this General accounting question with appropriate explanations.

Riley's Gear Shop reports the following financial data for the
year:
•
Sales $3,250 (all on credit)
=
Cost of Goods Sold (COGS) = $2,600
Ending Inventory = $520
.
Accounts Receivable = $490
Required:
How many days on average does it take Riley's to sell its
inventory?

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