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

question 24

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 average number of inventory days outstanding for Rearden is closest to:

• A)6 days.
• B)8 days.
• C)37 days.
• D)64 days.

Analyze the impact of transactions involving assets and liabilities on cash flows.

Calculate net cash provided/used by operating activities using the indirect method from given financial information.

Understand the classification of cash receipts and payments in the direct method of preparing a statement of cash flows.

Determine the cash effects of transactions and events related to investing and financing activities.

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Definitions:

Payoff Matrix

A table that shows the possible outcomes or payoffs resulting from different strategies chosen by two or more players in a game.

Dominant Strategy

A strategy that yields the best outcome for a player, regardless of what strategies other players choose.

Duopoly

A market structure characterized by two dominant firms controlling the majority of the market share.

Natural Monopoly

A market structure where a single supplier is most efficient due to high fixed or start-up costs, often in industries like utilities.