Refer to the Following Selected Financial Information from Graceworks,Corp

question 106

Multiple Choice

Refer to the following selected financial information from Graceworks,Corp.Compute the company's days' sales in inventory for Year 2.

• A)203.4.
• B)228.4.
• C)179.5.
• D)215.1.
• E)113.3.

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Definitions:

Draft

An instrument validating an order by a drawer to a drawee to pay a payee.

Imposter Rule

A legal principle concerning negotiable instruments which states that if an impostor induces a payor to issue a check made payable to the impostor, the drawer is liable for the amount to a holder in due course.

Forgery Rule

A legal principle that addresses the falsification of documents and the consequences associated with such acts.

Endorser

An individual or entity that signs a document (usually on its reverse side) indicating support, approval, or transfer of rights.