Based on the Following Data for the Current Year, What

question 59

Multiple Choice

Based on the following data for the current year, what is the number of days' sales in inventory
$\begin{array}{lr}\text { Sales on account during year } & \$ 1,204,500 \\\text { Cost of goods sold during year } & 657,000 \\\text { Accounts receivable, beginning of year } & 75,000 \\\text { Accounts receivable, end of year } & 85,000 \\\text { Inventory, beginning of year } & 85,600 \\\text { Inventory, end of year } & 98,600\end{array}$

• A) 51.2
• B) 44.4
• C) 6.5
• D) 7.5

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Definitions:

Living in Poverty

The condition of having insufficient resources or income to meet basic life needs.

Invisible Hand

A metaphor introduced by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests unintentionally benefit society as a whole.

Price Mechanism

The way in which prices rise and fall as a result of changes in demand and supply, guiding the allocation of resources in a market economy.

External Benefit

A benefit from a good or service that is received by someone not directly involved in the transaction or production of that good or service, also known as a positive externality.