The following is an extract from the income statement of a business: $000 $000 Sales revenue 22,000 Opening inventories 5,000 Purchases 15,000 ––––––– 20,000 less: Closing inventories 3,000 17,000 ––––––– ––––––– Gross profit 5,000 ––––––– To the nearest day, how many days’ sales are held in the closing inventories?
A 3,000/22,000 x 365 = 50 days B 3,000/17,000 x 365 = 64 days C 3,000/15,000 x 365 = 73 days D 3,000/20,000 x 365 = 55 days B |