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.

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Definitions:

Repression

A defense mechanism proposed by Freud in which unpleasant thoughts, feelings, or desires are excluded from conscious awareness.

Unconscious Conflicts

Hidden internal struggles that originate from childhood experiences and influence behavior and emotions.

Psychotherapist

A professional who treats mental health issues by talking with individuals, exploring emotional challenges, and offering coping strategies.

Freudian Interpretation

An approach in psychology that emphasizes unconscious processes and conflicts as key factors shaping personality and behavior.