Delmar Company Had Beginning Inventory of $90,000, Ending Inventory of $110,000

question 151

Multiple Choice

Delmar Company had beginning inventory of $90,000, ending inventory of $110,000, cost of goods sold of $600,000, and sales of $960,000.Delmar's days in inventory is:

• A)38.0 days.
• B)54.3 days.
• C)60.8 days.
• D)67.5 days.

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Definitions:

Merchandise

Goods that are bought and sold within the retail industry.

Sales on Account

Transactions where goods or services are sold with the agreement that payment will be made at a later date, creating an account receivable.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Operating Expenses

Costs associated with the daily operations of a business, excluding the cost of goods sold.