Redstone Electronics has current liabilities of $30 million. Cash makes up 40 percent of the current assets and accounts receivable make up another 20 percent of current assets. Redstone's current ratio is 1.2 times. What is the value of inventory listed on the firm's balance sheet?
Redstone Electronics has current liabilities of $30 million. Cash makes up 40 percent of the current assets and accounts receivable make up another 20 percent of current assets. Redstone's current ratio is 1.2 times. What is the value of inventory listed on the firm's balance sheet?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 6MCQ
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Transcribed Image Text:Redstone Electronics has current liabilities of $30 million.
Cash makes up 40 percent of the current assets and accounts
receivable make up another 20 percent of current assets.
Redstone's current ratio is 1.2 times.
What is the value of inventory listed on the firm's balance
sheet?
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