Question

31,207 36,479 37,998 62,700 56,500 113,500 85,000 50,000 89,400 Merchandise inventory Prepaid expenses Plant assets, net Total assets 10,050 290, 125266.833 238.980 $ 534,282 460,588 387,700 Liabilities and Equity Accounts payable Long-term notes payable secured by s 131,706 77,061 50,665 mortgages on plant assets 99,441 104,876 84,825 162,500 162,500 162,500 89.710 534,282 460,588 387,700 stock, $10 par value Retained earnings 140,635 116,151 Total 1iabilities and equity The company's income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit 548, 100 Sales Cost of goods sold s 423,686 215,316 11,808 9,029 s 356,265 138,669 12,606 Interest expense Income taxes Total costs and expenses Net income 515,762 $ 32,338 $ 1.99 34,728 $ 2.14 Exercise 13-8 Part 4 (4) Compute days' sales in inventory. Days | # | Days' Sales In Invent x Choose Denominator Choose Numerator Days' sales in 2017 days 2016:

Answer 1

Computation of Day's Sales in Inventory (Using 365 days per year) Day's Sales In Inventory (Ending Inventory/ Cost of Goods Sold) *365 ($113500 / $423686) * 365 = 97.78 days 2017 2016 ($85000/$356265) *36587.08 days Day's Sales in Inventory Choose numeratorchoose denominatoDaysDavs Sales in Inventory Ending InventoryCost of Goods Sold 365Days Sales in Inventory $113,500 / $423,686 * $356,265 * 97.78 Days 87.08 Days 2017 2016 365