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Financial Accounting

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Inventory Cost Ratios: Average Days in Inventory

FINACT-JR4XJQ

Pine Manufacturing Company has provided the following information:

Account 2019 2018 2017
Net Credit Sales \$2,000,000 \$1,800,000 \$1,700,000
Cost of Goods Sold \$1,100,000 \$1,044,000 \$918,000
Gross Margin \$900,000 \$756,000 \$782,000
Accounts Receivable \$350,000 \$342,000 \$360,000
Inventory \$125,000 \$105,000 \$98,000


How many days does it normally take the company to sell its inventory in 2019? (Round to nearest one hundredth).

A

38.16 days

B

35.47 days

C

63.15 days

D

71.15 days