$\text { Fawnsworth Industries }$ $\text { Below are some financial data for Fawnsworth Industries' current year. }$

question 76

Multiple Choice

$\text { Fawnsworth Industries }$

$\text { Below are some financial data for Fawnsworth Industries' current year. }$

$\begin{array}{lr}\text { Net sales on account during year } & \$ 500,000 \\\text { Cost of merchandise sold during year } & 300,000 \\\text { Accounts receivable, beginning of year } & 45,000 \\\text { Accounts receivable, end of year } & 35,000 \\\text { Inventory, beginning of year } & 90,000 \\\text { Inventory, end of year } & 110,000\end{array}$

-Refer to the data for Fawnsworth Industries.
Based on this information,what is Fawnsworth's number of days' sales in inventory (assuming a 360-day year) ?

• A)132 days
• B)216 days
• C)1,091 days
• D)120 days

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Definitions:

Income Statement

A financial document that reports a company's revenues, expenses, and profits over a specific period, showing how the revenues translate into net income.

Balance Sheet

A financial statement that presents the assets, liabilities, and shareholders' equity of a company at a specific point in time.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and management salaries not directly tied to production.

Work in Process

Materials and products that are partially completed but not yet finished goods in the manufacturing process.