Refer to the Following Selected Financial Information from McCormik, LLC

question 157

Multiple Choice

Refer to the following selected financial information from McCormik, LLC. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.) $$\begin{array} { | l | r | r | } \hline & { \text { Year 2 } } & { \text { Year 1 } } \\\hline \text { Cash } & \$ 37,500 & 6 , 8 5 0 \\\hline \text { Short-term investments } & 90,000 & 90,000 \\\hline \text { Accounts receivable, net } & 85,500 & 86,250 \\\hline \text { Merchandise inventory } & 121,000 & 117,000 \\\hline \text { Prepaid expenses } & 12,100 & 13,500 \\\hline \text { Plant assets } & 388,000 & 392,000 \\\hline \text { Accounts payable } & 113,400 & 111.750 \\\hline \text { Net sales } & 711,000 & 706,000 \\\hline \text { Cost of goods sold } & 390,000 & 385,500 \\\hline\end{array}$$

• A) 113.2.
• B) 80.0.
• C) 42.3.
• D) 43.9.
• E) 46.2.

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Definitions:

Scheme

A systematic plan of action designed to achieve a specific goal.

Organized Patterns

Predetermined or structured ways in which elements are arranged, leading to predictable outcomes.

Situation

The set of all external and internal factors that are present at a given time and place, influencing an individual's actions and decisions.

Information-processing Approach

A model in psychology that describes cognition as the processing of information through a system that works similarly to a computer.