Days to Sell Is Calculated As

question 153

Multiple Choice

Days to sell is calculated as:

• A)365 divided by ending inventory.
• B)Cost of goods sold divided by ending inventory.
• C)365 divided by Inventory turnover ratio.
• D)Cost of goods sold divided by Average inventory.

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Definitions:

Stockholder

An individual or entity that owns shares in a corporation and therefore has a claim on part of its assets and earnings.

Share Price

The price of a single share of a company's stock in the stock market.

Consistent Dividends

Regular and predictable payments made by a company to its shareholders out of its profits.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a period, to identify trends and changes.