Question 22. Allied Industries, Inc. Selected Income Statement Items, 2017 Cash Sales RM1,500,000 Credit Sales RM7,500,000 Total Sales RM9,000,000 COGS RM6,000,000 Allied Industries, Inc. Selected Balance Sheet Accounts 12/31/2017 12/31/2016 Change Accounts Receivable RM270,000 RM240,000 RM30,000 Inventory RM125,000 RM100,000 RM25,000 Accounts Payable RM110,000 RM90,000 RM20,000 A. Average inventory for the year is RM_ Formula: Beginning inventory + Ending inventory 2 B. Inventory turnover is times. Formula: COGS Average inventory C. Average production cycle is days. Formula: 365