Use the Following Information Regarding Black Company and Red Company

question 171

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 2013 (to the closest decimal place) ?"

• A) 67.8 days
• B) 38.4 days
• C) 28.1 days
• D) 40.6 days

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Definitions:

Current Liabilities

Obligations or debts that a company is expected to pay within one year or within its normal operating cycle, whichever is longer.

Balance Sheet

A summary report detailing a firm's assets, liabilities, and equity of shareholders at a certain time.

Sales Manager

An individual who directs an organization's sales team, oversees its operations, and strives to achieve sales targets through planning and implementing sales strategies.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis, made by an employer to an employee, especially a professional or white-collar worker.