ALT Had $25 Million in Sales Last Year

question 53

Multiple Choice

ALT had $25 million in sales last year.Its cost of goods sold was $15 million and its average inventory balance was $3 million.The average days of inventory in the industry is 65 days.What would ALT's average inventory need to be so that it would meet the industry average?

• A)$4.45 million
• B)$3.65 million
• C)$3.33 million
• D)$2.67 million
• E)$1.54 million

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Definitions:

Notes Receivable

Financial assets representing amounts owed to a company by entities or individuals, typically evidenced by a written promissory note.