Answer:
b. 94.9
Explanation:
The computation of the number of days' sales in average inventories is shown below:
Day inventory outstanding = (Beginning inventory + ending inventory) ÷ 2 ÷ cost of goods sold × total number of days in a year
= ($672,000 + $576,000) ÷ 2 ÷ $2,400,000 × 365 days
= ($624,000 ÷ $2,400,000 ) × 365 days
= 94.90 days
Simply we take the average of inventory and divide from the costs of goods sold
All other information which is given is not relevant. Hence, ignored it
