Which of the Following Is the Correct Formula to Calculate

question 79

Multiple Choice

Which of the following is the correct formula to calculate days' sales in inventory?

• A) Days' sales in inventory = 365 days × Inventory turnover
• B) Days' sales in inventory = 365 days + Inventory turnover
• C) Days' sales in inventory = 365 days / Inventory turnover
• D) Days' sales in inventory = 365 days - Inventory turnover

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