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?
A) .25
B) .57
C) .65
D) 1.09
E) 1.30

Question

Quizplus · Accepted Answer

The common-base year value is calculated by dividing the current year's inventory by the base year's inventory: $5,101 / $4,680 = 1.09.

In the Base Year, Marley Enterprises of Vancouver Had Cash