Determine brewster company inventory


Problem: 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

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Determine brewster company inventory
Reference No:- TGS01892181

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)