A company's sales are seasonal. It likes to keep 30 days of inventory. That is, it likes to have enough inventory at the end of a month to last amounts expected to be sold the FOLLOWING MONTH. Thus, inventory at the end of month 3 should be enough to last for month 4. Assume that each day in a quarter has the same sales. That is, daily sales in a quarter = quarterly sales/days in that quarter. Income statement Days in a quarter Sales revenue during the quarter COGS as % of sales COGS during the quarter Days of inventories Inventories Q1 Q2 Q3 Q1 90.00d 90.00d 90.00d 90.00d 9000.00 12000.00 4500.00 27000.00 9000.00 80.00% 80.00% 80.00% 80.00% 80.00% 7200.00 9600.00 3600.00 21600.00 7200.00 30.00d 30.00d 30.00d 30.00d 30.00d Q4 90.00d