Ask Question
7 November, 08:00

The following accounting data is used for questions 8 and 9:

Assets Inventory $530,000

Property, plant & equipment $500,000

Other assets $140,000

Total assets $1,170,000

Condensed Income Statement Revenue $2,000,000

Cost of goods sold $700,000

Other expenses $1,000,000

Net income $300,000

Using the above data pulled from a recent Walsh Manufacturing annual report, Walsh's percentage invested in inventory is closest to:

+3
Answers (1)
  1. 7 November, 09:02
    0
    Walsh's percentage invested in inventory is closest to the result of the amount invested in inventory divided by the total asset then expressed as a percentage.

    Mathematically,

    percentage invested in inventory = Inventory balance / total assets * 100%

    This is

    = $530,000/$1,170,000 * 100%

    = 45.3%
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The following accounting data is used for questions 8 and 9: Assets Inventory $530,000 Property, plant & equipment $500,000 Other assets ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers