The Following Balance Sheet Information Is Provided for Patton Company

question 16

Multiple Choice

The following balance sheet information is provided for Patton Company: $\begin{array}{|l|r|r|}\hline \text { Assets } & 2014 & 2013 \\\hline \text { Cash } & \$ 4,000 & \$ 2,000 \\\hline \text { Accounts receivable } & 15,000 & 12,000 \\\hline \text { Inventory } & \$ 35,000 & \$ 38,000 \\\hline\end{array}$ Assuming 2014 cost of goods sold is $730,000, what is the company's average days to sell inventory? (Use 365 days in a year. Do not round your intermediate calculations.)

• A) 17.5 days
• B) 18.25 days
• C) 19 days
• D) 20.86 days

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Definitions:

Amortized

The process of paying off a debt or loan in regular installments over a set period of time, which includes both principal and interest.

Goodwill

An intangible asset that arises when a company acquires another business for more than the fair value of its net identifiable assets.

Entire Business

Refers to the complete scope or operation of a company, encompassing all its functional areas and activities.

Legal Costs

Expenses associated with the legal process, including lawyer fees, court fees, and other costs incurred during legal proceedings.