In 2005, Airbus Co. purchased raw materials worth $400 million to manufacture airplanes for a total value of $900 million. In that year, Airbus Co. sold airplanes for a total value of $800 million. During 2005, Airbus Co. registered inventory investment of:

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The inventory investment is calculated by subtracting the cost of goods sold (COGS) from the total cost of goods manufactured (COGM). The COGM for Airbus Co. in 2005 is $400 million (the cost of raw materials). The COGS is the cost of goods manufactured minus the ending inventory value. Since we are not given the ending inventory value, we cannot calculate the COGS. However, we can use the sales value to estimate the COGS. The sales value of airplanes sold in 2005 is $800 million. Assuming a markup of 50% on cost, the estimated COGS is $400 million. Therefore, the ending inventory value is likely to be close to $100 million ($400 million COGM - $400 million estimated COGS). As a result, the inventory investment is $100 million.