Carey's Department Store had net sales of $20 million and cost of goods sold of $10.00 million for the year. The beginning inventory for the year was $5.00 million. The ending inventory for the year was $6.00 million.
What was the days' inventory outstanding? (Round any intermediary calculations to two decimal places and your final answer to the nearest day.)
A. 73 days
B. 61 days
C. 201 days
D. 37 days
Days Inventory Outstanding:
The days' inventory outstanding is a financial ratio used to measure the efficiency of a company's inventory management and the success with which it manages to minimize its investment in inventory.
Answer and Explanation: 1
|Cost of Goods Sold||$10,000,000|
|Number of days of inventory =...|
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fromChapter 22 / Lesson 42
An operating cycle consists of lead time, production time, sales time, delivery time, and cash-collection time. Learn the definitions of the parts of the operating cycle, how long the operation cycles are for different industries, and the formula used for calculating the operating cycle in accounting.