A company's balance sheet shows the following relationships: Current ratio: 3.0 times Acid-test ratio: 2.5 times Current

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A company's balance sheet shows the following relationships:

Current ratio: 3.0 times

Acid-test ratio: 2.5 times

Current assets to non-current assets: 1:2

The total assets of the business are £27 million.

What is the value of the inventories as shown on the balance sheet?

a. £3.25 m

b. £4.5 m

c. £1.5 m

d. £3 m

Related Book For answer-question

Accounting Principles Part 3

ISBN: 978-1118306802

6th Canadian edition Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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Posted Date: May 17, 2022 04:00 AM

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A company's balance sheet shows the following relationships: Current ratio: 3.0 times Acid-test ratio: 2.5 times Current

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Current assetsnon current assets 12 non current asse... View the full answer

Accounting Principles Part 3

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