The following are extracts from the income statement for the year ended 31 December 2009 and the balance sheet as at 31 December 2009 for RAO LLC $000 Sales revenue 20,000 Cost of sales (17,000) Distribution costs (600) Administrative expenses (400) Net interest (300) Taxation (1,000) Dividends (200) Non-current assets 20,000 Current assets Inventories 5,000 Trade receivables 3,000 Investments 1,500 Cash and bank 500 Current liabilities Bank overdraft 1,650 Trade payables 6,000 Taxation 1,000 Dividend (proposed) 200 Non-current liabilities Loan 1,000 Equity Ordinary shares 4,000 Share premium account 4,650 Retained earnings 11,500 The beginning balance of inventory is the same as the ending balance. Required: Calculate the days in inventory of the company Select one: a. 214 b. 174 c. 107 d. 236 No hand written and with explanation answer
The following are extracts from the income statement for the year ended 31 December 2009 and the balance sheet as at 31 December 2009 for RAO LLC
$000
Sales revenue
20,000
Cost of sales
(17,000)
Distribution costs
(600)
Administrative expenses
(400)
Net interest
(300)
(1,000)
Dividends
(200)
Non-current assets
20,000
Current assets
Inventories
5,000
Trade receivables
3,000
Investments
1,500
Cash and bank
500
Current liabilities
Bank overdraft
1,650
Trade payables
6,000
Taxation
1,000
Dividend (proposed)
200
Non-current liabilities
Loan
1,000
Equity
Ordinary shares
4,000
Share premium account
4,650
11,500
The beginning balance of inventory is the same as the ending balance.
Required:
Calculate the days in inventory of the company
Select one:
a. 214
b. 174
c. 107
d. 236
No hand written and with explanation answer
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