Question 21 of 25 Selected data pertaining to Lore Co. for the calendar year 20X4 are 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 number of days in inventory? O Numerator: 365 Denominator: Average Inventory O Numerator: 365 Denominator: inventory TurnoverO Numerator: average Inventory Denominator: Sales divided by 365 O Numerator: Sales divided by 365 Denominator: Inventory Turnover Question #207599 Correct ‘The formula for calculating days in inventory is as follows: x5 Days in Inventory Inventory Turnover None of the items presented in the question statement are relevant, as the que: choice is "Numerator: 365; Denominator: Inventory Turnover” nis only asking for the formula for days in inventory. The correct answerCMA - Liquidity Ratios Relevant Terms Cost of Goods Sold Inventory Inventory Turnover References Surigent CMA Exam Reference Volume|