PB&J Company Has Sales of $900,000 and Cost of Goods

question 47

Multiple Choice

PB&J Company has sales of $900,000 and cost of goods sold of $450,000. The firm had a beginning inventory of $70,000 and an ending inventory of $65,000. What is the length of the days' sales in inventory?

• A) 56.78 days
• B) 54.75 days
• C) 52.72 days
• D) 26.36 days

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Definitions:

Limited Liability

A legal principle that protects shareholders from being personally responsible for more than their investment in a corporation.

LLC

A Limited Liability Company (LLC) is a business structure in the United States that protects its owners from personal responsibility for its debts or liabilities.

Dissolution

The process of legally dissolving a corporation or partnership, ending its existence.

Partnership

A business structure where two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.