9.  A company’s balance sheet shows the following relationships: Current ratio: 3.0 times Acid-test ratio: 2.5 times Current assets to non-current assets: 1:2 The total assets of the business are £27 million. What is the value of the inventories as shown on the balance sheet? A   £1.5 m B   £3.25 m C   £4.5 m D   £3 m

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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9.  A company’s balance sheet shows the following relationships:

Current ratio: 3.0 times

Acid-test ratio: 2.5 times

Current assets to non-current assets: 1:2

The total assets of the business are £27 million.

What is the value of the inventories as shown on the balance sheet?

A  

£1.5 m

B  

£3.25 m

C  

£4.5 m

D  

£3 m

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