Days' Sales in Inventory Is Calculated As

question 33

Multiple Choice

Days' sales in inventory is calculated as:

• A)Ending inventory divided by sales times 365.
• B)Cost of goods sold divided by ending inventory.
• C)Ending inventory divided by cost of goods sold times 365.
• D)Cost of goods sold divided by ending inventory times 365.
• E)Ending inventory divided by cost of goods sold.

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Definitions:

Authorized Shares

Authorized shares are the maximum number of shares that a corporation is legally permitted to issue, as specified in its corporate charter.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership equity spread among individual shareholders.