The 2013 and 2014 Partial Balance Sheets for Ottoman Industries

question 121

Multiple Choice

The 2013 and 2014 partial balance sheets for Ottoman Industries is shown below. Sales revenue for Ottoman was $120,000 for 2013 and $114,000 for 2014 while cost of goods sold was $82,400 for 2013 and $72,500 for 2014.
What is the average number of days to sell inventory for 2014?

• A)133 days
• B)137 days
• C)141 days
• D)146 days

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Definitions:

NSF Cheque

A cheque that cannot be processed because the account it is drawn on does not have sufficient funds, standing for "Non-Sufficient Funds."

Outstanding Cheques

Checks that have been written and recorded in the issuing company's ledger but have not yet been cashed or cleared by the bank.

Balance Per Bank

It represents the amount of money in a company’s bank account, according to the bank's records.

Prenumbered Cheques

Checks that are printed in advance with sequential numbers to help maintain an audit trail and manage financial transactions securely.