A firm has sales of $720,000. The cost of goods sold is equal to 70% of sales. The firm has an average inventory of $6,500. How many days on average does it take the firm to sell its inventory?

A) 3.30 days
B) 4.71 days
C) 67.29 days
D) 77.54 days
E) 110.77 days

Inventory

The goods and materials a business holds for the ultimate goal of resale or production.

Cost of Goods Sold

Material and labor costs that are directly attributable to the manufacturing of a company’s products.

Sales

In the context of business, sales refer to the transactions and activities involved in selling goods or services to customers, often measured in terms of the total revenue generated.