Deere & Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. The company reports inventory and cost of goods sold using the LIFO method. Suppose it reported the following information in its 2022 annual report.

(in millions) 2022 2021

Inventories $2,410 3,430

Current assets 30,192

Current liabilities 12,580

LIFO reserve 3,774

Cost of goods sold 16,936

Compute Deere & Company's days in inventory for 2017.

Days in Inventory = 63 days

Explanation:

We know,

Days in Inventory = 365 days : Inventory Turnover

Given,

Inventory turnover = Cost of goods sold : Average Inventory

Inventory turnover = 16,936 : [ ($2,410 + 3,430) : 2]

Inventory turnover = 16,936 : (5,840 : 2)

Inventory turnover = 16,936 : 2,920

Inventory turnover = 5.8

Putting the values into the formula, we can get

Days in Inventory = 365 days : Inventory Turnover

Days in Inventory = 365 days : 5.8

Days in Inventory = 63 days