Calculate the Inventory-To-Sale Conversion Period Based on the Following Information

question 26

Multiple Choice

Calculate the inventory-to-sale conversion period based on the following information: average inventories = $120,000; average receivables = $90,000; average payables = $40,000; cost of goods sold = $182,500; and net sales = $365,000.

• A) 240.0 days
• B) 180.0 days
• C) 90.0 days
• D) 60.0 days
• E) 45.0 days

---

Definitions:

Ordinal Position

The rank position of a value within a sequence where the order matters but not the absolute difference between them.

Achievement Oriented

Being focused on setting and achieving goals, often in a competitive manner.

Firstborn Child

The first child born to a couple or the first child to be born within a family or relationship.

Feelings Of Abandonment

Emotional distress experienced when a person feels left alone, isolated, or deserted.