Phil's Hardware Sells Its Inventory in 75 Days,on Average

question 90

Multiple Choice

Phil's Hardware sells its inventory in 75 days,on average.Costs of goods sold for the year are $631,800.What is the average value of the firm's inventory?

• A)$119,706
• B)$129,821
• C)$147,132
• D)$161,096
• E)$182,513

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Definitions:

Cost Savings

The reduction in expenses achieved through efficiency improvements, price negotiations, or other methods, increasing overall profitability.

Profit Sharing

A company policy where a portion of the company's profits is distributed to its employees, often based on their performance or seniority.

Lump-Sum Bonus

A one-time payment given to an employee in addition to their regular salary, often as a reward for performance, achievement, or as part of benefits.

Cafeteria Plan

A type of employee benefit plan that allows workers to choose from a variety of pre-tax benefit options to design a benefits package that best meets their needs.