Last year, which is used as the base year, a firm had cash of $52, accounts receivable of $223, inventory of $509, and net fixed assets of $1,107. This year, the firm has cash of $61, accounts receivable of $204, inventory of $527, and net fixed assets of $1,216. What is the common-base year value of inventory?

A ... 67

B ... 91

C ... 88

D. 1.04

E. 1.18

Question

Business

Willow Chapman

8 April, 06:22

Last year, which is used as the base year, a firm had cash of $52, accounts receivable of $223, inventory of $509, and net fixed assets of $1,107. This year, the firm has cash of $61, accounts receivable of $204, inventory of $527, and net fixed assets of $1,216. What is the common-base year value of inventory?

A ... 67

B ... 91

C ... 88

D. 1.04

E. 1.18

+3

Answers (1)

Know the Answer?

Keith Livingston · Answer 1

D. 1.04

Explanation:

The computation of the common-base year value of inventory is shown below:

= Current year inventory value : Last year inventory value

= $527 : $509

= 1.04

Simply we divide the current year inventory value by the last year inventory value so that the common-base year value of inventory could come

All other information is not relevant.