Days' Sales in Inventory Is Calculated by

question 120

Multiple Choice

Days' sales in inventory is calculated by

• A) Dividing average merchandise inventory by cost of goods sold
• B) Dividing cost of goods sold by average merchandise inventory
• C) Dividing ending inventory by cost of goods sold times 365
• D) Dividing cost of goods sold by ending inventory times 365
• E) Dividing ending inventory by cost of goods sold

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