Alpha Company Would Like to Estimate How Long It Will

Essay

Alpha Company would like to estimate how long it will take to realize cash from its ending inventory.For this purpose the following data are submitted:
$\begin{array}{c}\begin{array}{lll} \text {Accounts Receivable, less allowance for doubtful accounts of \( \$ 40,000 \) }\\ \text {Ending Inventory}\\ \text {Net Sales}\\\text { Cost of Goode Sold }\end{array}\begin{array}{lll}\$660,000\\750,00\\5,650,000\\4,250,000\end{array}\end{array}$

$\text { Days' Sales in Inventory } = \frac { \text { Ending Inventory } } { \text { Cost of Goods Sold } / 365 }$
$\text { Days' Sales in Receivables } = \frac { \text { Gross Receivables } } { \text { Net Sales } / 365 }$
Required:
Estimate how long it will take to realize cash from the ending inventory.