Ernie's Mufflers Has Current Liabilities of $45 Million

question 31

Multiple Choice

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?

• A) $13.75m.
• B) $20.25m.
• C) $30.375m.
• D) $33.75m.

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Customer

An individual or business that purchases goods or services from a company.

Gross Lease

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The recurring charge that a tenant agrees to pay each month for occupying a property, excluding additional fees or utilities.

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