Question

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

Answer 1

Answer:

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.