Corona Company's Balance Sheet Accounts Follow What Is Corona Company's Days' Sales in Inventory Ratio for December

question 166

Multiple Choice

Corona Company's balance sheet accounts follow:
$\begin{array}{lrrr} \text { At December 31}&2011&2010&2009\\ \text { Assets}\\ \text { Cash } & \$ 25,868 & \$ 31,163 & \$ 31,182 \\ \text { Accounts receivable, net } & 78,034 & 53,995 & 41,152 \\ \text { Merchandise inventory } & 95,120 & 73,491 & 46,095 \\\text { Prepaid expenses } & 8,330 & 8,099 & 3,429 \\ \text { Plant assets,net } & 241,854 & 218,932 & 199,542 \\ \text { Total assets } & \$ 449,206 & \$ 385,680 & \$ 321,400 \\\text { Liabilities and Equity } & & & \\\text { Accounts payable } & \$ 108,058 & \$ 67,135 & \$ 42,849 \\\text { Long-term notes payable secured by mortgages on } & & & \\\text { plant assets } & 85,791 & 87,819 & 71,029 \\ \text { Common stock, } \$ 10 \text { par value } & 162,500 & 162,500 & 162,500 \\\text { Retained earnings } &92,857 & 68,226 & 45,022 \\\text { Total liabilities and equity } &\$449,206 & \$ 385,680 & \$ 321,400 \\\end{array}$

What is Corona Company's days' sales in inventory ratio for 2011 assuming net sales and gross profit for the period were $1,236,783,$927,587 respectively?

• A)86.75
• B)112.29
• C)105.41
• D)75.35
• E)107.11

---

Definitions:

Meal Delivery

A service that provides pre-prepared or ready-to-cook food directly to customers' homes or places of work.

Funeral Planning

The process of arranging the details and services of a funeral, often in advance, to honor the life of a deceased person and outline preferences for the ceremony and final disposition.

Coping With Grief

Approaches and methods used to manage the emotional pain and distress caused by loss and bereavement.

Bereavement Process

The period of mourning and adjustment following a loss, characterized by various stages of grief and emotional healing.