Weller,Inc Calculate the Average Number of Days That Inventory Was Held

question 57

Multiple Choice

Weller,Inc.provided the following particulars for 2017: $$\begin{array} { | l | r | } \hline \text { Cost of Goods Sold (Cost of sales) } & \$ 1,000,000 \\\hline \text { Beginning Merchandise Inventory } & 335,000 \\\hline \text { Ending Merchandise Inventory } & 600,000 \\\hline\end{array}$$ Calculate the average number of days that inventory was held by Weller,Inc.during 2017.(Assume 365 days in a year.Round your intermediate calculations and final answer to two decimal places. )

• A)341.12 days
• B)218.56 days
• C)122.07 days
• D)170.56 days

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Definitions:

Risk-Adjusted Return

This is a measure of how much risk is involved in generating a security's or portfolio's return, helping investors to compare the performance of different investments on a risk-adjusted basis.

Total Risk

The overall uncertainty associated with an investment, combining both systemic and idiosyncratic risks.

Long Position

An investment strategy where an investor buys securities with the expectation that their price will rise, aiming to sell them at a higher price in the future.

Maturity

The final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.