Use the Following Information Regarding Black Company and Red Company

question 160

Multiple Choice

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

---

Definitions:

Public Choice Analysis

The study of political behavior using methods and principles of economics, focusing on the self-interest motives of participants and the impact of their behavior on public policy.

Rational Personal Choice

The decision-making process by individuals that results in the optimal level of benefit or utility for the individual, based on personal preferences and available information.

Personal Benefit

The advantage or gain that an individual receives from making a decision or undertaking an action.

Public Choice Theory

An economic theory that studies how public decisions are made and how public policies are shaped, considering individuals as self-interested agents.