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Use the Following Information Regarding Black Company and Red Company

Question 178

Multiple Choice

Use the following information regarding Black Company and Red Company to answer the question "Which amount is equal to Red Company's "days in inventory" for 2021 (to the closest decimal place) ?"  Year  Inventory  Turnover  Ending Inventory  Black Company 2020$26,34020218.7$29,89020228.4$30,100 Red Company 2020$25,86020217.0$24,75020227.5$22,530\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) 48.7 days
C) 42.0 days
D) 52.1 days

Correct Answer:

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