Kaufman's Department Store Had Net Sales of $20 Million and Cost

question 110

Multiple Choice

Kaufman's Department Store had net sales of $20 million and cost of goods sold of $14 million for the year. The average inventory for the year was $4 million. What was the average number of days in inventory?

• A) 46
• B) 104
• C) 92
• D) 52

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Definitions:

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders, but retained for reinvestment in the business or to pay off debt.