Refer to the Following Selected Financial Information from Phantom, Corp

question 160

Multiple Choice

Refer to the following selected financial information from Phantom, Corp. Compute the company's days' sales in inventory for Year 2. (Use 365 days a year.) $\begin{array}{lll}& \text { Year 2 } & \text { Year 1 } \\\text { Merchandise inventory } & 271,000 & 253,500 \\\text { Cost of goods sold }& 486,400 & 433,100\end{array}$

• A) 203.4.
• B) 228.4.
• C) 179.5.
• D) 215.1.
• E) 113.3.

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Definitions:

Representativeness Heuristic

A cognitive shortcut used in decision making, where an individual relies on the similarity between the item in question and a category prototype.

Divergent Thinking

Expanding the number of possible problem solutions; creative thinking that diverges in different directions.

Fixation

(1) in thinking, the inability to see a problem from a new perspective; an obstacle to problemsolving. (2) in personality theory, according to Freud, a lingering focus of pleasure-seeking the developing human organism from about 2 weeks after fertilization through the secondmonth

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.