Schlofman Company has the following assets.
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 20,000
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000
Property, plant, and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 220,000
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $405,000
Companies in Schlofman’s industry typically have the following asset mix: cash, 7%; accounts receivable, 15%; inventory, 18%; property, plant, and equipment, 60%. Compared to other companies in its industry, Schlofman has too much of one asset. Which one? Show your computations.