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29 November, 01:23

A firm has sales of $1,210, net income of $225, net fixed assets of $542, and current assets of $298. The firm has $100 in inventory. What is the common-size balance sheet value of inventory

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  1. 29 November, 01:45
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    11.90%

    Explanation:

    Given that,

    Sales of the firm = $1,210

    Net income = $225

    Net fixed assets = $542

    Current assets = $298

    Inventory = $100

    Total assets:

    = Net fixed assets + Current assets

    = $542 + $298

    = $840

    Common-size balance sheet value of inventory:

    = Inventory : Total assets

    = $100 : $840

    = 0.1190 or 11.90%
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