In the base year, Marley Enterprises of Vancouver had cash of $560, accounts receivable of $2,650, inventory of $4,680, and fixed assets of $12,600. This year the firm has cash of $630, accounts receivable of $3,280, inventory of $5,101, and fixed assets of $15,850. What is the common-base year value of the inventory?

Question

Quizplus · Accepted Answer

The common-base year value of an item is calculated by dividing the item's value in the current year by its value in the base year. For inventory, this year's value is $5,101 and the base year's value is $4,680. So, the common-base year value is $5,101 / $4,680 = 1.09.

In the Base Year, Marley Enterprises of Vancouver Had Cash