Analysis of the statement of financial position of Charon for the year ended 20X9 reveals the following relationships: Current ratio 2:1 Sales: current assets 5:1 Acid test ratio 1.5:1 If the sales for the year were $30 million, what is the value of inventory that will appear in the statement of financial position? A $1.5m B $10.5m C $3.0m D $4.5m

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Analysis of the statement of financial position of Charon for the year ended 20X9 reveals the following

relationships:

Current ratio 2:1

Sales: current assets 5:1

Acid test ratio 1.5:1

If the sales for the year were $30 million, what is the value of inventory that will appear in the

statement of financial position?

A $1.5m

B $10.5m

C $3.0m

D $4.5m

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