Answer:
Option A
Explanation:
As per the uniform commercial code set by the appropriate government agency of America, delivery of any commodity whether tangible or intangible should take place at the business facility of the supplier. Such facility could be a warehouse or a shop etc. However this is a guideline and not a rule which must be followed.
Thus, from the above we can conclude that the correct option is A.
Answer:
(a) 8 times
(b) 45.6 days
Explanation:
Given that,
Cost of goods sold = $500,000
Average inventory = $62,500
Assume 365 days a year.
(a) Inventory turnover ratio:
= Cost of goods sold ÷ Average inventory
= $500,000 ÷ $62,500
= 8 times
(b) Number of days' sales in inventory days:
= 365 days ÷ Inventory turnover ratio
= 365 days ÷ 8
= 45.6 days
