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31 May, 04:36

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

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Answers (1)
  1. 31 May, 04:47
    0
    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.
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