Hind Company Presents the Following Data for 2012 Required:
A

Essay

Hind Company presents the following data for 2012:
$\begin{array}{c}\begin{array}{lll} \text {Accounts Receivable, less allowance for doubtful accounts of \( \$ 40,000 \) }\\ \text {Ending Inventory, LIFO (estimated replacement cost \( \$ 800,000 \) ) }\\ \text {Net Sales}\\ \text {Cost of Goods Sold (estimated replacement cost, \( \$ 4,150,000 \) )} \end{array}\begin{array}{lll}\$780,000\\500,000\\4,750,000\\3,550,000\end{array}\end{array}$

Required:
a.Compute the days' sales in receivables.
b.Compute the days' sales in inventory,using the cost figure.
c.Compute the days' sales in inventory,using the replacement cost for the inventory and the cost of goods sold.
d.Explain which days' sales in inventory figure is probably more realistic,the one computed in (b)or (c).