Norton Company has the following assets on January 1, 2017 and January 1, 2016.
$$\begin{array} { l r r }
& 1 / 1 / 17 & 1 / 1 / 16 \
\hline \text { Cash } & \$ 430,000 & \$ 370,000 \
\text { Accounts receivables } & ? & 333,000 \
\text { Marketable securities } & 36,000 & 130,000 \
\text { Irventory } & 220,000 & ? \
\text { Net plant and equipment } & 120,000 & 129,000
\end{array}$$
If Norton's current ratio is 2.20 for 2016 and its current liabilities are $600,000, what is the amount of its inventory?
A)$197,000
B)$487,000
C)$238,636
D)There is not enough information to answer this question.

Question

Norton Company has the following assets on January 1, 2017 and January 1, 2016.
$$\begin{array} { l  r  r } 
& 1 / 1 / 17 & 1 / 1 / 16 \
\hline \text { Cash } & \$ 430,000 & \$ 370,000 \
\text { Accounts receivables } & ? & 333,000 \
\text { Marketable securities } & 36,000 & 130,000 \
\text { Irventory } & 220,000 & ? \
\text { Net plant and equipment } & 120,000 & 129,000
\end{array}$$
If Norton's current ratio is 2.20 for 2016 and its current liabilities are $600,000, what is the amount of its inventory?
A)$197,000
B)$487,000
C)$238,636
D)There is not enough information to answer this question.

Quizplus · Accepted Answer

The Answer of Norton Company has the following assets on January 1, 2017 and January 1, 2016.
$$\begin{array} { l  r  r } 
& 1 / 1 / 17 & 1 / 1 / 16 \
\hline \text { Cash } & \$ 430,000 & \$ 370,000 \
\text { Accounts receivables } & ? & 333,000 \
\text { Marketable securities } & 36,000 & 130,000 \
\text { Irventory } & 220,000 & ? \
\text { Net plant and equipment } & 120,000 & 129,000
\end{array}$$
If Norton's current ratio is 2.20 for 2016 and its current liabilities are $600,000, what is the amount of its inventory?
A)$197,000
B)$487,000
C)$238,636
D)There is not enough information to answer this question.

Norton Company Has the Following Assets on January 1, 2017