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Brewster Company: Using ratio analysis

Brewster Company has an acid-test ratio of 1.5 and a current ratio of 2.5. Current assets equal $200,000, of which $10,000 is prepaid expenses. The company's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory. Brewster Company's inventory must be:

A) $30,000
B) $110,000
C) $70,000
D) $80,000

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Brewster Company has an acid-test ratio of 1.5 and a current ratio of 2.5. Current assets equal $200,000, of which $10,000 is prepaid expenses. The company's ...

Solution Summary

Solution helps in analyzing the Brewster Company: Using ratio analysis, compute ending inventory

$2.19