Ernies mufflers has current liabilities of 45 million cash, Ask an Expert

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Ernie's Mufflers has current liabilities of $45 million. Cash makes up 5 percent of the current assets and accounts receivable makes up another 50 percent of current assets. Ernie's current ratio = 1.5 times. What is the value of inventory listed on the firm's balance sheet?

$20.25 m
$33.75 m
$30.375 m
$13.75 m

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172040

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