Refer to the Following Selected Financial Information from Graceworks Corp

question 62

Multiple Choice

Refer to the following selected financial information from Graceworks Corp. Compute the company's inventory turnover for Year 2. $\begin{array}{|l|r|r|}\hline & \text { Year 2 } & {\text { Year 1 }} \\\hline \text { Merchandise inventory } & 271,000 & 253,500 \\\hline \text { Cost of goods sold } & 486,400 & 433,100\\\hline\end{array}$

• A)1.71.
• B)1.75.
• C)0.93.
• D)1.79.
• E)1.85.

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Definitions:

Base-Rate Information

Statistical information that represents the prevalence or general occurrence of a particular trait, behavior, or event within a larger population.

Availability Heuristic

An instinctive mental tactic that uses the nearest instances that surface in thought while considering a certain topic, theory, strategy, or judgment.

Base-Rate Information

Base-rate information refers to the statistical likelihood of an event or characteristic within a given population, used in decision-making processes.

Stroop Effect

A demonstration of cognitive interference where the brain's reaction time slows down when processing conflicting information, such as reading the word "green" printed in red color.