Answer:
Inventory value = $280,000
Explanation:
given data
current ratio = 8.25 : 1
accounts receivable = $40,000
cash = $340,000
accounts payable = $65,000
current liabilities = $15,000
to find out
how much inventory do they have
solution
Current asset Current liabilities
Present current ratio 8.25 1
Total current liabilities $80,000
Total current assets $660,000
so here Inventory value will be as
Inventory value = Total current assets - Cash - Accounts receivable ..........1
Inventory value = $660,000 - $340,000 - $40,000
Inventory value = $280,000
