On Average, a Firm Sells $2,500,000 in Merchandise a Month

Multiple Choice

On average, a firm sells $2,500,000 in merchandise a month.Its cost of goods sold equals 80 percent of sales, and it keeps inventory equal to one-half of its monthly cost of goods on hand at all times.If the firm analyzes its accounts using a 360-day year, what is the firm's inventory conversion period?

A) 360 days
B) 180 days
C) 30 days
D) 15 days
E) 10 days