1. BL Motors has sales for the year of $287,400, cost of goods sold equal to 68 percent of sales, and an average inventory of $37,800. The profit margin is 7 percent and the tax rate is 34 percent. How many days on average does it take the firm to sell an inventory item?
75.68 days
81.46 days
70.60 days
78.74 days
82.03 days
2. The MACRS depreciation allowances on 3-year property are 33.33 percent, 44.44 percent, 14.82 percent, and 7.41 percent, respectively. What is the amount of the depreciation in year 2 for a 3-year asset with an initial cost of $89,000?
A. $39,551.60
B. $26,369.05
C. $35,414.14
D. $33,333.33