The 2013 and 2014 Partial Balance Sheets for Ottoman Industries

question 121

Multiple Choice

The 2013 and 2014 partial balance sheets for Ottoman Industries is shown below. Sales revenue for Ottoman was $120,000 for 2013 and $114,000 for 2014 while cost of goods sold was $82,400 for 2013 and $72,500 for 2014.
What is the average number of days to sell inventory for 2014?

• A)133 days
• B)137 days
• C)141 days
• D)146 days

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Definitions:

Elastic

A characteristic of goods where their demand or supply changes significantly when the price changes.

Monopolistic Competitor

A market structure where many firms offer products or services that are similar but not perfect substitutes, allowing for some degree of market power.

Excess Capacity

describes a situation where a firm produces less than its total output capacity, usually resulting in inefficiencies and higher production costs.

Economic Profit

The difference between total revenue and total economic costs, including both explicit and implicit costs, reflecting the true profitability of a firm.