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Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin...

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Accounting

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. Year 1 Year 2 Accounts receivable $ 150,000 $ 170,000 Inventory 900,000 1,000,000 Accounts payable 1,100,000 1,200,000

Accounts receivable days outstanding at the end of Year 2 is closest to:

a. 30.6 days. b. 26.0 days. c. 27.0 days. d. 6.1 days.

AND

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. Year 1 Year 2 Accounts receivable $ 150,000 $ 170,000 Inventory 900,000 1,000,000 Accounts payable 1,100,000 1,200,000

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.

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