Use the Following Information to Answer the Question(s)below

question 19

Multiple Choice

Use the following information to answer the question(s) below:
Rearden Metal (RM) had $120 million in sales in 2019.Its cost of goods sold was $85 million,and its average inventory balance was $15 million.
-The industry average days of inventory is 75 days.The amount that Rearden would have to increase/decrease its inventory in order to match the industry average is closest to:

• A)decrease inventory by $2.2 million.
• B)increase inventory by $2.2 million.
• C)increase inventory by $2.5 million.
• D)increase inventory by $4.2 million.

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