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)

Accounting Oct 06, 2020

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.)

Expert Solution

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

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