Accounting 9706 · AS & A Level · Analysis and communication of accounting information

Analysis and communication of accounting information — practice question

A business has these current assets and current liabilities. trade receivables $6000$ bank overdraft $1500$ cash in hand $50$ trade payables $5050$ Inventory is the only other item included in working capital. The current ratio is $2:1$. What is the value of the inventory?

  • A$2550
  • B$4050
  • C$5550
  • D$7050

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