Answer:
$113.24
Explanation:
Computation for the company's days' sales in inventory for Year 2.
Using this formula
Days' sales in inventory = Merchandise Inventory / Cost of Goods Sold * 365
Let plug in the formula
Days' sales in inventory = $121,000 / $390,000 * $365
Days' sales in inventory= $113.24
Therefore the company's days' sales in inventory for Year 2 will be $113.24