Harwichport Company Has a Current Ratio of 3

Multiple Choice

Harwichport Company has a current ratio of 3.5 to 1 and an acid-test ratio of 2.8 to 1.Current assets equal $175,000,of which $5,000 consists of prepaid expenses.What must be Harwichport Company's inventory?

A) $30,000.
B) $35,000.
C) $40,000.
D) $50,000.Inventory = 175,000 - 140,000 - 5,000 = $30,000.