contestada

Tefft Industries has an average inventory of $170,000, sells on terms of 2/10, net 30, and its cost of sales is $540,000. What is Tefft's inventory conversion period?
a.cannot be determined from the data given
b.85 days
c.115 days
d.105 days

Respuesta :

abiolataiwo2015

Based on the information given Tefft's inventory conversion period is:

c.115 days.

Inventory Conversion Period:

Using this formula

Inventory Conversion Period=Average Inventory÷(Cost of Sales÷365 days)

Let plug in the formula

Inventory Conversion Period=$170,000 ÷ ($540,000÷365)

Inventory Conversion Period=$170,000 ÷  (1479.45205479)

Inventory Conversion Period=114.907407408

Inventory Conversion Period=115 days(Approximately)

Inconclusion Tefft's inventory conversion period is:  c.115 days.

Learn more about inventory conversion period here:https://brainly.com/question/25687278

Otras preguntas