Question

Use the following information to calculate this firm's days' sales in inventory as of the end of 2016: Income Statement For the Year 2016 Net Sales 631,000 COGS 442,220 Depreciation Expense 28,100 EBIT 160,700 Interest Expense 14,900 EBT 145,800 Tax Expense 49,600 Net Income 96,200 Cash Accounts Receivable Inventory Net Fixed Assets Total Assets Balance Sheet Beginning of 2016 38,200 91,400 203,900 516,100 849,600 End of 2016 $ 43,700 $ 86,150 $ 214,600 $ 537,950 $ 882,400 Accounts Payable Long-term Debt Common Stock Accumulated Retained Earnings Total Liabilities and Equity 136,100 $ 329,500 $ 75,000 $ 309,000 $ 849,600 $ 104,300 298,200 82,000 397,900 882,400 $ $ Note: Report your answer as a number rounded to two decimal places.

Answer 1

Days sales in inventory = 365*Ending Inventory/ COGS

= 365*214600/ 442220

=177.13 days