Waylon Appliances Is a Large Applicance Retailer with More Than

question 98

Multiple Choice

Waylon Appliances is a large applicance retailer with more than 800 stores in the U.S.The following financial information relates to fiscal 2017 and 2018. $\begin{array}{lrr}\text { (In Millions) } & \mathbf { 2 0 1 8 } & \mathbf { 2 0 1 7 } \\\text { Sales } & \$ 42,286 & \$ 40,185 \\\text { Cost of goods sold } & 33,000 & 31,000 \\\text { Accounts receivable } & 820 & 960 \\\text { Merchandise inventory } & 2,900 & 2.700\end{array}$ How much is the company's days' sales in inventory for 2018 and 2017, respectively?

• A)32.08, 31.79 days
• B)41.52, 41.91 days
• C)11.38, 11.48 days
• D)2.13; 3.15 days

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Definitions:

Revenue Variance

The variance between projected revenue and the actual income received.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Net Operating Income

The profit generated from a company's everyday business operations, calculated by subtracting operating expenses from the gross income.