Question

Agnes Company reported the following data:    Quick assets $55,000 Current assets 150,000 Total liabilities 300,000...

Agnes Company reported the following data:
  

Quick assets $55,000
Current assets 150,000
Total liabilities 300,000
Average net receivables 12,600
Beginning inventory 38,000
Long-term liabilities 200,000
Net credit sales 126,000
Cost of goods sold 84,000
Ending inventory 46,000

What was the average number of days to sell inventory?

182.5

121.7

165.9

202.7

Homework Answers

Answer #1
Calculation of days sale in inventory:
Average inventory= (38000+46000)/2= 42000
Inventory turnover ratio= cost of goods sold/ average inventory
                                                 = 84000/42000=2
Days sale in inventory=365/ inventory turnover ratio
                                             =365/2=182.5
So correct answer is 182.5
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ABC Company has the following financial information for 2018: Total current assets: $2,200,000 Total current liabilities:...
ABC Company has the following financial information for 2018: Total current assets: $2,200,000 Total current liabilities: $1,200,000 Cash: $300,000 Inventory: $1,000,000 Accounts Receivable: $800,000 Accounts Payable: $500,000 Net sales is $10,000,000 Variable cost (VCR) is 30% of sales Cost of Goods Sold (COGS) at 40% of sales Average daily cash flow $27,000 Standard deviation of cash flow is $40,000 Its ROE is 25% Total earnings of $500,000, dividend payout of $150,000. Its cost of capital is 7% Line of credit...
A company has the following inputs: Current ratio = 3.0 Quick ratio = 1.50 Current liabilities...
A company has the following inputs: Current ratio = 3.0 Quick ratio = 1.50 Current liabilities = $800,000 Sales = $10 million (100% on credit) Avg collection period = 36.5 days Note: the only current assets that the company has on the books include cash, AR, and inventory
Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31,...
Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $830 $630 Temporary investments 1,200 1,500 Accounts receivable 820 950 Inventory 2,300 2,600 Accounts payable 1,900 2,200 a. Compute the quick ratio on December 31 for each year. Round to one decimal place. 20Y4 20Y3 Quick Ratio b. Is the quick ratio improving or declining?
1.opal company has total assets of $700,000 and total liabilities of $200,000 the company's debt- to...
1.opal company has total assets of $700,000 and total liabilities of $200,000 the company's debt- to - equity ratio is closest to: 0.50 0.20 0.40 0.29 2. kringle company a retailer had a cost of goods sold of $1,400,000 last tear the beginning inventory balance was $125,000 and the ending inventory balance was $120,000 the company inventory turnover ratio was closet to 11.43 11.20 10.49 11.60 3. the quick ratio a.is generally lower than the current ratio b.excluded inventories and...
1) RevCo has total assets of $346,200, net fixed assets of $277,400, current liabilities of $16,100,...
1) RevCo has total assets of $346,200, net fixed assets of $277,400, current liabilities of $16,100, and long-term liabilities of $324,600. What is RevCo's total debt ratio? A) .98 B) .78 C) .67 D) .51 E) .14 2) Mint Ltd has sales of $938,300, cost of goods sold of $764,500, and inventory of $223,600. How long on average does it take the firm to sell its inventory? A) 101.75 days B) 4.68 days C) 159.01 days D) 16.40 days E)...
Financial statements for AAR Company appear below: AAR Company Balance Sheet December 31 Current assets:    ...
Financial statements for AAR Company appear below: AAR Company Balance Sheet December 31 Current assets:     Cash and marketable securities $21,000     Accounts receivable, net 160,000     Inventory 300,000     Prepaid expenses          9,000       Total current assets 490,000 Noncurrent assets:     Plant & equipment, net      810,000 Total assets $1,300,000 Current liabilities:     Accounts payable $75,000     Accrued liabilities 25,000     Notes payable, short term      100,000        Total current liabilities 200,000 Noncurrent liabilities:     Bonds payable      300,000...
Which of the following is false? Group of answer choices Cashman chicken has current liabilities of...
Which of the following is false? Group of answer choices Cashman chicken has current liabilities of $350,000, a quick ratio of 1.65, inventory turnover of 4.4, and a current ratio of 2.9. Then, the cost of goods sold is $1,925,000. Harrison steel has a total debt to equity ratio of .90. Return on assets is 8.5 percent, and total equity is $500,000. Then, the net income is $80,750. HCC Inc. has net income of $161,000, a net profit margin of...
A company entering liquidation has reported assets with a book value of $200,000 and a liquidation...
A company entering liquidation has reported assets with a book value of $200,000 and a liquidation value of $120,000, and previously unreported software that it estimates it can sell for $25,000. It has reported liabilities with a book value of $180,000, and believes it is probable that it can negotiate the payments down by 25%. The company's net assets, reported on its statement of net assets in liquidation, are A $(35,000) B $20,000 C $(15,000) D $(60,000) Inho Corporation has...
A)The following items are reported on a company’s balance sheet: Cash $400,000 Marketable securities 50,000 Accounts...
A)The following items are reported on a company’s balance sheet: Cash $400,000 Marketable securities 50,000 Accounts receivable 150,000 Inventory 200,000 Accounts payable 250,000 Determine the (a) current ratio, and (b) quick ratio. Round your answers to one decimal place. a. Current ratio: b. Quick ratio : B) A company reports the following: Income before income tax: $341,880 Interest expense: 77,700 Determine the number of times interest charges are earned. Round your answer to one decimal place. C) A company reports...
The financial statements of the company are shown below: The Company Income Statement 2017 Sales $...
The financial statements of the company are shown below: The Company Income Statement 2017 Sales $ 10,050,000 Cost of Goods Sold 5,825,000 Depreciation Expense 580,000 Gross Profit $ 3,645,000 Selling and Administrative Expenses 2,950,000 EBIT $ 695,000 Interest Expense 275,000 Income before Tax $ 420,000 Taxes 272,000 Net Income $ 148,000 The Company Comparative Balance Sheets 2017 2016 Cash $ 46,000 $ 41,000 Accounts Receivable 647,000 675,000 Inventory 626,000 541,000 Total Current Assets $ 1,319,000 $ 1,257,000 Fixed Assets 2,200,000...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT