Last Year, Which Is Used as the Base Year, a Firm

question 375

Multiple Choice

Last year, which is used as the base year, a firm had cash of $60, accounts receivable of $100, inventory of $200, and fixed assets of $500. This year the firm has cash of $50, accounts receivable of $150, inventory of $250, and fixed assets of $550. What is the common-base year value of accounts receivable?

• A) .12
• B) .15
• C) .67
• D) 1.16
• E) 1.50

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