The days inventory held for 2014 is (rounded) :

A) 96 days.
B) 106 days.
C) 116 days.
D) 138 days.

Question

The days inventory held for 2014 is (rounded) :A) 96 days.B) 106 days.C) 116 days.D) 138 days.

LePorsche Cannon · Accepted Answer

Final Answer : B, Explanation :   The days inventory held is calculated as   Inventory Cost of Goods Sold × 365  \frac{	ext{Inventory}}{	ext{Cost of Goods Sold}} 	imes 365  Cost of Goods Sold Inventory ​ × 365  . For 2014, this is   312 , 500 982 , 500 × 365 ≈ 116  \frac{312,500}{982,500} 	imes 365 \approx 116  982 , 500 312 , 500 ​ × 365 ≈ 116   days. However, the correct formula should actually be   Inventory Cost of Goods Sold per day  \frac{	ext{Inventory}}{	ext{Cost of Goods Sold per day}}  Cost of Goods Sold per day Inventory ​  , which is   312 , 500 982 , 500 365 ≈ 116  \frac{312,500}{\frac{982,500}{365}} \approx 116  365 982 , 500 ​ 312 , 500 ​ ≈ 116  . The mistake in the explanation led to the wrong choice being initially selected. The correct calculation indeed results in approximately 116 days, aligning with choice C, not B. This correction addresses the calculation error.

The days inventory held for 2014 is (rounded) :

A) 96 days.
B) 106 days.
C) 116 days.
D) 138 days.

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