Ask Question
15 March, 05:22

A firm has sales of $1,140, net income of $218, net fixed assets of $528, and current assets of $284. The firm has $93 in inventory. What is the common-size balance sheet value of inventory

+2
Answers (1)
  1. 15 March, 05:39
    0
    The answer is 11.45%

    Explanation:

    Solution

    Given that:

    Firm sales = $1,140

    The net income = $218

    Net fixed assets = $528

    The firm's inventory = $93

    The next step is to find the common-size balance sheet value of inventory

    Now,

    The common size value of inventory would be value of inventory divided by total value of assets.

    So,

    Total assets=current assets+net fixed assets

    =$528+$284 = $812

    Therefore,

    The common size value of inventory = inventory/Total assets

    $93/$812

    =11.45%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A firm has sales of $1,140, net income of $218, net fixed assets of $528, and current assets of $284. The firm has $93 in inventory. What ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers