Bob Gibson's Has Sales for the Year of $311,400,cost of Goods

question 29

Multiple Choice

Bob Gibson's has sales for the year of $311,400,cost of goods sold equal to 78 percent of sales,and an average inventory of $42,800.The profit margin is 6 percent and the tax rate is 35 percent.How many days on average does it take the firm to sell an inventory item?

• A)5.68 days
• B)11.46 days
• C)64.32 days
• D)71.74 days
• E)82.03 days

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Definitions:

Ownership Interest

A legal or beneficial right of possession or control over property, giving the holder certain enforceable rights.

Corporate Stock

Shares representing ownership in a corporation, with holders often entitled to receive dividends and vote on corporate matters.

Shareholder

A person or entity that owns part of a company through the possession of one or more shares of its stock.

Director

A person elected by the shareholders to direct corporate affairs.