Assume That the Net Sales for a Company Is $5,000

question 13

Multiple Choice

Assume that the net sales for a company is $5,000, cost of goods sold is $3,000, and average inventory is $1,500. Calculate the number of days' sales in inventory.

• A) 145
• B) 274
• C) 110
• D) 183

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Definitions:

Capital Structure

The mix of different types of debt and equity a company uses to finance its operations.

New Common Stock

Shares issued by a company for the first time to the public, typically through an Initial Public Offering (IPO) or additional issuance.

Flotation Costs

Expenses incurred by a company in issuing new securities, including underwriting, legal, registration, and printing fees.

New Equity

Funds raised by a company through the issuance of additional shares of stock, contributing to its equity capital.