Norton Company Has the Following Assets on January 1, 2017

question 42

Multiple Choice

Norton Company has the following assets on January 1, 2017 and January 1, 2016.
$$\begin{array} { l r r } & 1 / 1 / 17 & 1 / 1 / 16 \\\hline \text { Cash } & \$ 430,000 & \$ 370,000 \\\text { Accounts receivables } & ? & 333,000 \\\text { Marketable securities } & 36,000 & 130,000 \\\text { Irventory } & 220,000 & ? \\\text { Net plant and equipment } & 120,000 & 129,000\end{array}$$
If Norton's current ratio is 2.20 for 2016 and its current liabilities are $600,000, what is the amount of its inventory?

• A)$197,000
• B)$487,000
• C)$238,636
• D)There is not enough information to answer this question.

---

Definitions:

Poverty Rate

The percentage of the population that lives below the national poverty line, indicating the proportion of individuals or families with income levels insufficient to meet basic living expenses.

Homeless

The homeless are individuals who lack stable, permanent, and adequate housing.

$2 A Day

A poverty threshold that delineates extreme poverty by the metric of living on less than $2 per day, adjusted for purchasing power parity.

Largest Poverty Group

refers to the demographic segment within a society that accounts for the largest share of individuals living below the poverty line.