Copyright

Carey's Department Store had net sales of $20 million and cost of goods sold of $10.00 million...

Question:

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

Become a Study.com member to unlock this answer! Create your account

View this answer


Beginning inventory $5,000,000
Enign inventory $6,000,000
Average inventory $5,500,000
Cost of Goods Sold $10,000,000
Number of days of inventory =...

See full answer below.


Learn more about this topic:

Loading...
Operating Cycle in Accounting: Definition & Formula

from

Chapter 22 / Lesson 42
2.9K

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.


Related to this Question

Explore our homework questions and answers library