Answer:
Ending balance in inventory= $22,000
Current liabilities= $88,000
Explanation:
The current assets section of stibblr pharmaceutical company included cash of $34,000 and accounts receivables of $54,000
The company's current ratio is 2.5
The acid test ratio is 2.0
Acid test ratio = cash + account receivables /current liabilities
2.0= ($34,000+$54,000)/current liabilities
2.0= 88,000/current liabilities
Current liabilities = 88,000/2
= $44,000
Current ratio= cash + account account receivables + inventory /current liabilities
2.5= $34,000+$54,000 + inventory/$44,000
2.5= $88,000+Inventory /44,000
2.5×44,000= 88,000 + inventory
110,000= 88,000 + Inventory
Inventory = $110,000-88,000
= $22,000
Hence the current liabilities is $88,000 and inventory is $22,000
