Fact Pattern: Liquid Hydrogen Products, LLC, has a 365-day year. The following are its financial statements.

LIQUID HYDROGEN PRODUCTS, LLC
Income Statement
Year ended December 31, 20X8
Sales		$2,500
Cost of goods sold
Beginning inventory	$ 100
Purchases	2,000
Cost of goods available	2,100
Ending inventory	150
Cost of goods sold		(1,950)
Gross profit margin
Selling expenses	125
Administrative expenses	135
General expenses	85
Operating Expenses		(345)
Pretax income		205
Income taxes		(62)
Net income		$ 143

LIQUID HYDROGEN PRODUCTS, LLC
Statement of Equity
Year ended December 31, 20X8
Beginning equity		$200
Add: net income		143
Ending equity		$343

LIQUID HYDROGEN PRODUCTS, LLC
Balance Sheet
Years 20X8 and 20X7
	20X8	20X7
Assets
Cash	$ 24	$ 2
Accounts receivable	305	135
Prepaid expenses	4	5
Inventory	200	205
Current assets	533	347
Equipment (net of depreciation)	145	150
Total assets	$678	$497
Liabilities
Accounts payable	$200	$175
Noncurrent notes payable	135	122
Equity	343	200
Total liabilities and equity	$678	$497

Liquid Hydrogen finds a buyer for its inventory who will pay 90% of the cost of the inventory in cash immediately. If Liquid Hydrogen used the cash to pay off its accounts payable, how much inventory should it sell to get its current ratio within the limits necessary to borrow from its primary lender?

	$156.
	$180.
	$0. The current ratio as of 12/31/X8 is higher than the minimum of 2:1.
	$200.