Discuss about the inventory holding period

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Reference no: EM132000415

Question: Minden Co has current assets of $180,000 (cash: $20,000, accounts receivable: $70,000, inventory: $90,000), and long-term assets that had to cost $400,000, with accumulated depreciation to date of $180,000. Sales were $500,000, and operating profit was $50,000. Tax was $20,000 and interest paid was $10,000. Their inventory holding period (to the nearest day) was:

a) 66 days

b) 51 days

c) 46 days

d) 32 days

e) none

Reference no: EM132000415

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