Carey's Department Store had net sales of $20 million and cost of goods sold of $ 13.00 million for the year. The beginning inventory for the year was $ 4.00 million. The ending inventory for the year was $ 8.00 million. What was the days' inventory outstanding? (Round any intermediary calculations to two decimal places and your final answer to the nearest day.) A. 28 days B. 168 days C. 91 days D. 46 days

Option B) 168 Days' Inventory Outstanding

Explanation:

Days' Inventory Outstanding is defined as the number of days a company hold its inventory. The ratio is is computed as follows:

Days' Inventory Outstanding = (Average Inventory ÷ Cost of Goods Sold) × Number of Days in a Year*

where:

Average Inventory = (Beginning Inventory + Ending Inventory) ÷ 2

*Number of Days in a Year = 365

Calculations:

Average Inventory = ($4 Million + $8 Million) ÷ 2 = $6 Million  

Cost of Goods Sold = $13 Million  

Days' Inventory Outstanding = ($6 Million ÷ $13 Million) × 365 days

Days' Inventory Outstanding = 168.46 Days = ~168 Days

fractionally backed paper money

fiat money

paper money

metallic money