1. Inventory can be used as collateral for a loan in all of the following ways EXCEPT:
A. a floating lien.
B. a warehouse arrangement.
C. a factoring arrangement.
D. a trust receipt.
2. Rearden Metal (RM) had $120 million in sales in 2009. Its cost of goods sold was $85, 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