Refer to the Following Selected Financial Information from Texas Electronics

question 230

Multiple Choice

Refer to the following selected financial information from Texas Electronics. Compute the company's days' sales uncollected for Year 2. (Use 365 days a year.) $\begin{array}{lrr}& \text { Year 2 } & \text { Year 1 } \\\text { Cash } & \$ 37,500 & \$ 36,850 \\\text { Short-term investments } & 90,000 & 90,000 \\\text { Accounts receivable, net } & 85,500 & 86,250 \\\text { Merchandise inventory } & 121,000 & 117,000 \\\text { Prepaid expenses } & 12,100& 13,500\\\text { Plant assets } & 388,000 & 392,000 \\\text { Accounts payable } & 113,400 & 111,750 \\\text { Net sales } & 711,000 & 706,000 \\\text { Cost of goods sold } & 390,000 & 385,500\end{array}$

• A) 43.9.
• B) 42.3.
• C) 46.2.
• D) 80.0.
• E) 113.3.

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Definitions:

Psychological Egoism

The theory that suggests individuals are driven by self-interest and all actions are motivated by personal gain.

Altruistic Behavior

Selfless actions performed for the benefit of others, without expectation of personal gain.

Self-Interest

The concern for one's own advantage and well-being, with behavior guided primarily by personal benefits.

Psychological Egoist

A theory or belief that posits individuals are inherently driven by self-interest, and all actions, even those appearing altruistic, are ultimately motivated by personal gain.