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:

Quantity Decrease

A reduction in the amount or number of a particular good or service that is available or being produced.

Efficiency Losses

The reduction in economic efficiency due to imbalances or distortions in the market, often manifesting as excess or insufficient production and consumption.

Output Level

The quantity of goods or services produced by a firm or economy in a given period.

External Benefits

Positive effects of a product or service that are enjoyed by people other than those who directly use or consume the product or service.