Question

Garcia Company reported Cost of goods sold of $835,000 and ending Inventory of $41,750. The Days' sales in inventory (rounded to whole days) is:

Answer 1

18 days

Step-by-step explanation:

`(Inventory)/(COGS) * 365 = Days \: Sales \: in \: Inventory`

Inventory 41,750

COGS 835,000

`(41,750)/(835,000) * 365 = Days \: Sales \: in \: Inventory`

Sales In Inventory = 18.25 days = 18

The inventory is sold every 18 days