Sales $5,300 $5,900 Depreciation 750 850 COGS 2400 2900 Interest 180 196 Cash 200 500 Accts Receivables 200 400 Notes Payable 800 550 Long-term debt 1500 1950 Net fixed assets 3000 3500 Accounts Payable 250 400 Inventory 700 900 Dividend payout 30% 30% Tax rate 35% 30%   What is the inventory period in 2021

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 25P: LO.2 Oak Corporation has the following general business credit carryovers. If the general business...
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                                                   2020        2021                                

                                          

Sales

$5,300

$5,900

Depreciation

750

850

COGS

2400

2900

Interest

180

196

Cash

200

500

Accts Receivables

200

400

Notes Payable

800

550

Long-term debt

1500

1950

Net fixed assets

3000

3500

Accounts Payable

250

400

Inventory

700

900

Dividend payout

30%

30%

Tax rate

35%

30%

 

What is the inventory period in 2021?

Expert Solution
Step 1

Inventory period = (Average inventory/ average cost of goods sold)*365

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