Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. $$\begin{array} { l r r }
& \text { Year 1 } & \text { Year 2 } \
\text { Accounts receivable } & \$ 150,000 & \$ 170,000 \
\text { Inventory } & 900,000 & 1,000,000 \
\text { Accounts payable } & 1,100,000 & 1,200,000
\end{array}$$
-Days in inventory at the end of Year 2 is closest to:
A)60.0 days.
B)69.0 days.
C)66.0 days.
D)54.0 days.

Question

Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. $$\begin{array} { l r r } 
& \text { Year 1 } & \text { Year 2 } \
\text { Accounts receivable } & \$ 150,000 & \$ 170,000 \
\text { Inventory } & 900,000 & 1,000,000 \
\text { Accounts payable } & 1,100,000 & 1,200,000
\end{array}$$
-Days in inventory at the end of Year 2 is closest to:
A)60.0 days.
B)69.0 days.
C)66.0 days.
D)54.0 days.

Quizplus · Accepted Answer

The Answer of Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. $$\begin{array} { l r r } 
& \text { Year 1 } & \text { Year 2 } \
\text { Accounts receivable } & \$ 150,000 & \$ 170,000 \
\text { Inventory } & 900,000 & 1,000,000 \
\text { Accounts payable } & 1,100,000 & 1,200,000
\end{array}$$
-Days in inventory at the end of Year 2 is closest to:
A)60.0 days.
B)69.0 days.
C)66.0 days.
D)54.0 days.

Sellograph Corporation Reports Sales of $10 Million for Year 2