Ottawa, Inc For the Year Ending December 31, 2019 Calculate the Days' Sales in Inventory for 2019

question 90

Multiple Choice

Ottawa, Inc. provides the following data: $$\begin{array} { | l | r | r | } \hline & { \underline { 2019 } } & { \underline { 1018 } } \\\hline \text { Cash } & \$ 23,000 & \$ 22,000 \\\hline \text { Accounts Receivable, Net } & 37,000 & 37,000 \\\hline \text { Merchandise Inventory } & 55,000 & 25,000 \\\hline \text { Property, Plant, and Equipment, Net } & \underline { 127,000 } & \underline { 96,000 } \\\hline \text { Total Assets } & \$ 242,000 & \$ 180,000 \\\hline\end{array}$$ For the year ending December 31, 2019:
$$\begin{array} { | l | r | } \hline \text { Net Credit Sales } & \$ 300,000 \\\hline \text { Cost of Goods Sold } & ( 170,000) \\\hline \text { Gross Profit } & \$ 130,000 \\\hline\end{array}$$ Calculate the days' sales in inventory for 2019. (Use 365 days for any calculations. Round any intermediate calculations and your final answer to two decimal places.)

• A) 53.68
• B) 118.09
• C) 48.67
• D) 85.88

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Definitions:

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured as a result of illness or injury.

Marginal Benefit

The extra pleasure or benefit derived from acquiring or making an additional unit of a product or service.

Muscle Contraction

The activation of tension-generating sites within muscle fibers, leading to shortening or elongation that enables movement.

Muscle Strength

The maximum amount of force a muscle or group of muscles can exert in a single effort.