Use the following information regarding Metlock, Inc. and Blossom Company to answer the question "Which amount is equal to Metlock, Inc's "days in inventory" for 2022 (to the closest decimal place)?" (Use 365 days for calculation.) Year Inventory Turnover Metlock, Inc. 2020 2021 6.8 2022 6.6 Blossom Company 2020 2021 5.5 2022 5.8 O 62.9 days O 53.7 days O 66.4 days O 55.3 days
Use the following information regarding Metlock, Inc. and Blossom Company to answer the question "Which amount is equal to Metlock, Inc's "days in inventory" for 2022 (to the closest decimal place)?" (Use 365 days for calculation.) Year Inventory Turnover Metlock, Inc. 2020 2021 6.8 2022 6.6 Blossom Company 2020 2021 5.5 2022 5.8 O 62.9 days O 53.7 days O 66.4 days O 55.3 days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Inventory Turnover Analysis: Metlock, Inc. and Blossom Company
#### Objective:
Determine the "days in inventory" for Metlock, Inc. for the year 2022 using the provided inventory turnover data.
#### Information Provided:
The inventory turnover ratios for Metlock, Inc. and Blossom Company over the recent years are as follows:
**Metlock, Inc.:**
| Year | Inventory Turnover |
|------|---------------------|
| 2020 | - |
| 2021 | 6.8 |
| 2022 | 6.6 |
**Blossom Company:**
| Year | Inventory Turnover |
|------|---------------------|
| 2020 | - |
| 2021 | 5.5 |
| 2022 | 5.8 |
#### Question:
Which amount is equal to Metlock, Inc.'s "days in inventory" for 2022 (to the closest decimal place)?
**Equation Used for Calculation:**
\[ \text{Days in Inventory} = \frac{365}{\text{Inventory Turnover Ratio}} \]
#### Options Provided for Selection:
- 62.9 days
- 53.7 days
- 66.4 days
- 55.3 days
#### Explanation of Calculation:
To find the "days in inventory" for Metlock, Inc. for the year 2022, with an inventory turnover ratio of 6.6, use the following formula:
\[
\text{Days in Inventory} = \frac{365}{6.6} \approx 55.3 \text{ days}
\]
Thus, the closest decimal place value for Metlock, Inc.'s days in inventory for the year 2022 is 55.3 days.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb33fce48-b282-410a-8ab1-ee022258521a%2F91b805c9-e8aa-488e-8d33-3e6fc561890b%2Ffc0zl7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Inventory Turnover Analysis: Metlock, Inc. and Blossom Company
#### Objective:
Determine the "days in inventory" for Metlock, Inc. for the year 2022 using the provided inventory turnover data.
#### Information Provided:
The inventory turnover ratios for Metlock, Inc. and Blossom Company over the recent years are as follows:
**Metlock, Inc.:**
| Year | Inventory Turnover |
|------|---------------------|
| 2020 | - |
| 2021 | 6.8 |
| 2022 | 6.6 |
**Blossom Company:**
| Year | Inventory Turnover |
|------|---------------------|
| 2020 | - |
| 2021 | 5.5 |
| 2022 | 5.8 |
#### Question:
Which amount is equal to Metlock, Inc.'s "days in inventory" for 2022 (to the closest decimal place)?
**Equation Used for Calculation:**
\[ \text{Days in Inventory} = \frac{365}{\text{Inventory Turnover Ratio}} \]
#### Options Provided for Selection:
- 62.9 days
- 53.7 days
- 66.4 days
- 55.3 days
#### Explanation of Calculation:
To find the "days in inventory" for Metlock, Inc. for the year 2022, with an inventory turnover ratio of 6.6, use the following formula:
\[
\text{Days in Inventory} = \frac{365}{6.6} \approx 55.3 \text{ days}
\]
Thus, the closest decimal place value for Metlock, Inc.'s days in inventory for the year 2022 is 55.3 days.
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