Respuesta :

ahmedgodtrust

Answer:  Current ratio = Current assets/Current liabilities

                         12           = Current assets/$40,000

              Current assets = 12 x $40,000

              Current assets = $480,000

            Thus, inventory = $480,000 - $140,000

                       Inventory = $340,000

Explanation: Current ratio is the ratio of current assets to current liabilities. In this question, current ratio and current liabilities were given.  Thus, current assets would be the subject of the formula.

After obtaining the value of current assets, then, the value of cash and accounts receivable would be deducted so as to obtain the value of inventory.

Parrain

Based on the current ratio, the liabilities and the cash and accounts receivable, the inventory is valued at $340,000

The current ratio is calculated as:

= Current assets / Current liabilities

The Current Assets are therefore:

12 = Current Assets / 40,000

Current Assets = 12 x 40,000

= $480,000

The inventory is therefore:

= Current assets - Cash and Accounts receivable

= 480,000 - 140,000

= $340,000

In conclusion, inventory is valued at $340,000

Find out more at https://brainly.com/question/1114476.

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