The answer to this question is a difficult one. There are many factors that go into determining how much inventory OldWest should report, and an accurate answer would require a lot of research. However, we can make some assumptions about the level at which they should be reporting their inventory. If the company wants to have enough cash on hand in order to cover payroll expenses for three months then they would need approximately $150 million dollars worth of inventory. This number was calculated by taking 3 times the amount of monthly payroll expenses ($500k) divided by 12 (months). It’s hard to know what the appropriate amount of inventory that OldWest should have on hand at any given time. There are many factors that go into calculating this number, and it would take a lot of research to come up with an accurate answer. However, we can make some assumptions about how much they need in order to cover payroll expenses for three months by dividing their monthly expense ($500k) by 12 (months). This yields approximately $150 million dollars worth of inventory needed. So if you want more information on determining how much oldwest needs as far as inventory levels then I recommend you read our blog post here: How Much Inventory Should OldWest Report? How Much Inventory Should Old West Report?

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