Middleton's Has Sales for the Year of $311,400, Cost of Goods

question 104

Multiple Choice

Middleton's has sales for the year of $311,400, cost of goods sold equal to 74 percent of sales, and an average inventory of $42,800. The profit margin is 6 percent and the tax rate is 34 percent. How many days on average does it take the firm to sell an inventory item?

• A) 5.38 days
• B) 11.46 days
• C) 67.79 days
• D) 71.74 days
• E) 82.03 days

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