Asked by
Jasmin Saldivar
on Nov 08, 2024Verified
Big Foot Wholesalers has sales of $1,387,400, costs of goods sold of $891,400, inventory of $188,936, and accounts receivable of $94,800. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit?
A) 49.8 days
B) 53.2 days
C) 77.4 days
D) 84.1 days
E) 86.3 days
Days to Sell Inventory
A financial metric measuring the average number of days a company takes to sell its inventory.
Sales
The total amount of revenue generated from goods or services sold by a company.
Costs of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.
- Examine financial documents to calculate principal financial indices.
Verified Answer
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Learning Objectives
- Examine financial documents to calculate principal financial indices.
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