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Home Q & A Board Other Fields Homework Help Business Accounting
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whitedreamerz whitedreamerz
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A month ago
The 2020, 2021, and 2022 partial balance sheets for Ottoman Manufacturing Company appear below.


​​202020212022
Current assets​​​
  Cash$  20,000$  16,000$  14,000
  Accounts receivable, net28,00020,00024,000
  Inventory    22,000    30,000    28,000
Total current assets70,00066,00066,000
Plant & equipment, net    62,000    60,000    40,000
Total assets$132,000$126,000$106,000

Net credit sales for Ottoman were $126,000 for 2020, $120,000 for 2021 and $114,000 for 2022, while cost of goods sold was $84,000 for 2020, $82,400 for 2021 and $72,500 for 2022.

What is the average number of days to sell inventory for 2022?

▸ 141 days

▸ 137 days

▸ 133 days

▸ 146 days
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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naj2008hnaj2008h
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A month ago
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More solutions for this book are available here
146 days

Inventory turnover: $72,500 ÷ [($30,000 + $28,000) ÷ 2] = 2.5 times
Average days to sell inventory: 365 ÷ 2.5 = 146 days
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whitedreamerz Author
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A month ago
This helped my grade so much Perfect
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this is exactly what I needed
annabananerz
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Correct Slight Smile TY
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