Question

You gathered the following information from the financial statements of a company you are researching. Accounts receivable: $500,000 (end of year), $430,000 (beginning of year) Accounts payable: $350,000 (end of year), $380,000 (beginning of year) Inventory: $1 million (end of year), $1.1 million (beginning of year) Sales: $5.6 million over the year Cost of goods sold: $4 million over the year What is the inventory period? 4 days 30 days 33 days 93 days 96 days

Name: you gathered the following information from the financial statements of a company you are researching accounts receivables 500000 end of year 430000 beginning of year account payable 350000 96348
Uploaded: 2023-06-10T06:53:27-08:00
Duration: 4 min 41 s
Channel: Akash M
Description: you gathered the following information from the financial statements of a company you are researching accounts receivables 500000 end of year 430000 beginning of year account payable 350000 96348

          You gathered the following information from the financial statements of a company you are researching. 

Accounts receivable: $500,000 (end of year), $430,000 (beginning of year) 

Accounts payable: $350,000 (end of year), $380,000 (beginning of year) 

Inventory: $1 million (end of year), $1.1 million (beginning of year) 

Sales: $5.6 million over the year 

Cost of goods sold: $4 million over the year 

What is the inventory period?
4 days
30 days
33 days
93 days
96 days

Added by Margaret J.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Akash M

06/10/2023

Step 1

We can do this by adding the beginning and ending inventory and dividing by 2: ($1 million + $1.1 million) / 2 = $1.05 million Show more…

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You gathered the following information from the financial statements of a company you are researching. Accounts receivable: $500,000 (end of year), $430,000 (beginning of year) Accounts payable: $350,000 (end of year), $380,000 (beginning of year) Inventory: $1 million (end of year), $1.1 million (beginning of year) Sales: $5.6 million over the year Cost of goods sold: $4 million over the year What is the inventory period? 4 days 30 days 33 days 93 days 96 days