Sellograph Corporation Reports Sales of $10 Million for Year 2

question 62

Multiple Choice

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

• A)60.0 days.
• B)69.0 days.
• C)66.0 days.
• D)54.0 days.

---

Definitions:

Immediate Gratification

The desire to experience fulfillment without delay or deferment, often prioritizing short-term rewards over long-term outcomes.

Gratification

Gratification is the satisfaction or pleasure one feels when their desires or needs are fulfilled.

Pleasure Seeking

The drive or effort to obtain enjoyment or gratification, often through activities that are satisfying or enjoyable.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.