Based on the Following Data for the Current Year, What

question 187

Multiple Choice

Based on the following data for the current year, what is the number of days' sales in inventory? Sales on account during year
$1,204,500
Cost of merchandise sold during year
657,000
Accounts receivable, beginning of year
75,000
Accounts receivable, end of year
85,000
Inventory, beginning of year
85,600
Inventory, end of year

• A) 51.2 98,600
• B) 44.4
• C) 6.5
• D) 7.5

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Definitions:

Dividends

The part of corporate profits paid to its shareholders.

Payroll Tax

Taxes imposed on employers or employees, often calculated as a percentage of the salaries that employers pay their staff, funding social security and healthcare programs.

Social Security Tax

A charge imposed on both workers and their employers to finance the Social Security system, offering financial support to retirees, individuals with disabilities, and children of workers who have passed away.

Income Tax Decrease

A reduction in the rate at which individuals or corporations are taxed on their income, potentially leading to increased disposable income and consumption.