Days' Sales in Inventory Is Calculated By

question 194

Multiple Choice

Days' sales in inventory is calculated by:

• A) Ending inventory divided by cost of goods sold times 365.
• B) Dividing merchandise inventory by cost of goods sold.
• C) Cost of goods sold divided by ending inventory times 365.
• D) Ending inventory divided by cost of goods sold.
• E) Dividing cost of goods sold by merchandise inventory.

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