Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the following information was available for waterw

The following information was available for Waterway Company at December 31, 2018: beginning inventory $107000; ending...

Free

90.2K

Verified Solution

Question

Finance

The following information was available for Waterway Company atDecember 31, 2018: beginning inventory $107000; ending inventory$61000; cost of goods sold $6132000; and sales $1440000. Waterway’sdays in inventory in 2018 was 3.6 days. 21.3 days. 6.4 days. 5.0days.

Answer & Explanation Solved by verified expert
4.1 Ratings (550 Votes)

Information provided:

Beginning inventory= $107,000

Ending inventory= $61,000

Cost of goods sold= $6,132,000

Sales= $144,000

Formula for computing number of days of inventory:

Number of days of inventory= 365/Inventory turnover

Inventory turnover is calculated using the below formula:

Inventory Turnover= Cost of Goods Sold/Average Inventory

                                      = $6,132,000/ ($107,000 + $61,000/2)

                                      = $6,132,000/ $84,000

                                      = 73 times.

Days of inventory= 365/ 73

                                  = 5 days.

Hence, the answer is option d.

In case of any query, kindly comment on the solution.
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

The following information was available for Waterway Company atDecember 31, 2018: beginning inventory $107000; ending inventory$61000; cost of goods sold $6132000; and sales $1440000. Waterway’sdays in inventory in 2018 was 3.6 days. 21.3 days. 6.4 days. 5.0days.

Other questions asked by students

Q

Describe how to make 500mL 0.435 M HNO3 from a 6.00M HNO3 solution. (Titration Lab)

Chemistry
Q

A sample of n 25 scores is selected from a normal population with a mean...

Statistics
Q

What strategy are you using to sketch graph of linear systems and non linear systems

Algebra
Q

Single plantwide factory overhead rate Platzer Instruments Inc. makes three musical...

Accounting
Q

7-21 Price and efficiency variances. Peterson Foods manufactures pumpkin scones. For...

Accounting
Q

In 2019, Elaine paid $2,800 of tuition and $600 for books for her dependent son...

Accounting
Q

Shannon Company segments its income statement into North and South Divisions. The company's overall sales,...

Accounting
Q

(CO C) Which statement is false? Circumstantial evidence does not prove an issue directly. The...

Accounting
Q

Accounting
Q

Which is not a required element of a contract? Agreement Capacity Lawful Object Duty

Accounting
Q

Not [email protected]? Switch account * Required Independent MCQs 1. Which of the following factors worsen...

Finance
Q

OPS: the course im studying is finance and investment, please do not use handwriting or...

Finance