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27 November, 12:49

A firm has sales of $1,070, net income of $211, net fixed assets of $514, and current assets of $270. The firm has $86 in inventory. What is the common-size balance sheet value of inventory

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  1. 27 November, 16:41
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    10.97$

    Explanation:

    Calculation of the common-size balance sheet value of inventory

    Inventory = $86

    Total Assets = Current Assets + Net Fixed Assets

    Total Asset = $270 + $514

    Total Asset = $784

    Using this formula

    Common-size balance sheet value of inventory = Inventory / Total asset

    Let plug in the formula

    = $86/$784

    = 0.1097*100

    = 10.97%

    Therefore the common-size balance sheet value of inventory will be 10.97%
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