Use the following information regarding Black Company and Red Company to answer the question "Which amount is equal to Black Company's "days in inventory" for 2022 (to the closest decimal place)?" $$\begin{array}{l}
\begin{array} { | l | c | c | c | }
\hline & \text { Year } & \begin{array} { c }
\text { Inventory } \
\text { Turnover }
\end{array} & \text { Ending Inventory } \
\hline \text { Black Company } & 2020 & & \$ 26,340 \
\hline & 2021 & 8.7 & \$ 29,890 \
\hline & 2022 & 8.4 & \$ 30,100 \
\hline
\
\hline \text { Red Company } & 2020 & & \$ 25,860 \
\hline & 2021 & 7.0 & \$ 24,750 \
\hline & 2022 & 7.5 & \$ 22,530 \
\hline
\end{array}
\end{array}$$
A)43.5 days
B)52.1 days
C)48.7 days
D)42.0 days

Question

Use the following information regarding Black Company and Red Company to answer the question "Which amount is equal to Black Company's "days in inventory" for 2022 (to the closest decimal place)?" $$\begin{array}{l}
\begin{array} { | l | c | c | c | } 
\hline & \text { Year } & \begin{array} { c } 
\text { Inventory } \
\text { Turnover }
\end{array} & \text { Ending Inventory } \
\hline \text { Black Company } & 2020 & & \$ 26,340 \
\hline & 2021 & 8.7 & \$ 29,890 \
\hline & 2022 & 8.4 & \$ 30,100 \
\hline
\
\hline \text { Red Company } & 2020 & & \$ 25,860 \
\hline & 2021 & 7.0 & \$ 24,750 \
\hline & 2022 & 7.5 & \$ 22,530 \
\hline
\end{array}
\end{array}$$
A)43.5 days
B)52.1 days
C)48.7 days
D)42.0 days

Quizplus · Accepted Answer

Days in inventory is calculated as 365 divided by the inventory turnover ratio. For Black Company in 2022, it is 365 / 8.4 = 43.45, which rounds to 43.5 days.

Use the Following Information Regarding Black Company and Red Company