Consider the following information What is the number of day

Consider the following information:

What is the number of days to sell? (Round intermediate calculations to 2 decimal places.)

A. 36.5 days

B. 47.5 days

C. 51.1 days

D. 39.3 days

Sales Revenue	$650,000
Ending inventory	70,000
Cost of Goods Sold	500,000
Beginning inventory	60,000

Solution

Answer is B. 47.5 days Explanation: Cost of Goods sold 500,000 Average inventory (70000+60000)/2 65000 Days sales in inventory: Number of days in Year * Average inventory/ Cost of Goods sold 365 *65000 /500,000 =47.45 days