Sellograph Corporation Reports Sales of $10M for Year 2, with a Gross

question 58

Multiple Choice

Sellograph Corporation reports sales of $10M for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit.
$$\begin{array} { | l | r | r | } \hline & \text { Year 1 } & \text { Year 2 } \\\hline \text { Accounts receivable } & \$ 150,000 & \$ 170,000 \\\hline \text { Inventory } & 900,000 & 1,000,000 \\\hline \text { Accounts payable } & 1,100,000 & 1,200,000 \\\hline\end{array}$$
-Accounts payable days outstanding at the end of Year 2 is closest to:

• A) 57.0 days
• B) 69.0 days
• C) 72.0 days
• D) 43.2 days

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Definitions:

Empirically Untestable

A concept or hypothesis that cannot be verified or disproven through observation or experiment.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event or outcome strengthens the behavior that led to its removal.

Punishment

The weakening (decrease in frequency) of a response because it is followed by the arrival of a (presumably) unpleasant stimulus.

Noxious Stimulus

An unpleasant or harmful stimulus that causes discomfort or pain.