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Homework answers / question archive / The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal): Item/Account 2018 2017 Cash $35,000 $24,000 Accounts Receivable 56,000 52,000 Inventory 44,000 48,000 Current Liabilities 76,000 42,000 Net Sales (all credit)
The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal):
Item/Account 2018 2017
Cash $35,000 $24,000
Accounts Receivable 56,000 52,000
Inventory 44,000 48,000
Current Liabilities 76,000 42,000
Net Sales (all credit). 550,000 485,000
Cost of Goods Sold 350,000 265,000
Use this information to determine the number of days in inventory for 2018: (Use a 365 day year. Round & enter your answers to one decimal place and enter the value.)
Computation of Number of Days in Inventory for 2018:
Number of Days in Inventory = (Average inventory/Cost of goods sold)*365
Here,
Average Inventory = ($44,000+$48,000)/2 = $46,000
Cost of Goods Sold = $350,000
Number of Days in Inventory = ($46,000/$350,000)*365 = 47.97 or 48 days
