Brewster Company has an acid-test ratio of 1.5 and a current ratio of 2.5. Current assets equal $200,000, of which $10,000 is prepaid expenses. The company's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory. Brewster Company's inventory must be:

A: 30,000

B: 110,000

C: 70,000

D: 80,000

Answer rating: 100% (QA)

Current Ratio Current Assets Current Liabilities 25 200000 Current Liabili... View the full answer