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Use the following information to solve the Questions 1, 2, and 3 below: Sellograph Corporation reports sales of $10 million for Year 2, with a
Use the following information to solve the Questions 1, 2, and 3 below: 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--- Accounts receivable: $ 150,000 Inventory: $ 900,000 Accounts payable: $ 1,100,000 ---Year 2--- Accounts receivable: $ 170,000 Inventory: $ 1,000,000 Accounts payable: $ 1,200,000 2. Accounts payable days outstanding at the end of Year 2 is closest to: A) 57.0 days B) 69.0 days C) 72.0 days D) 43.2 days
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