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.

Question

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The Answer of 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.

Ernie's Mufflers Has Current Liabilities of $45 Million