Selected data pertaining to Lore Co. for the calendar Year 4 is as follows: Net cash sales | $3,000 | Cost of goods sold | 18,000 | Inventory at beginning of year | 6,000 | Purchases | 24,000 | Accounts receivable at beginning of year | 20,000 | Accounts receivable at end of year | 22,000 |
Lore would use which of the following to determine the average days sales in inventory?
| | Numerator
| Denominator
|
|---|
|
a. | Sales divided by 365 | Inventory turnover | |
b. | 365 | Inventory turnover | |
c. | 365 | Average inventory | |
d. | Average inventory | Sales divided by 365 |
|
