Selected Data from Carson Corporation's Financial Statements for the Year

Multiple Choice

Selected data from Carson Corporation's financial statements for the year ended December 31, Year 2 are as follows. $\begin{array}{ll}\text { Current ratio } & 1.4 \\\text { Quick ratio } & 0.86 \\\text { Current liabilities } & \$ 450,000 \\\text { Accounts receivable tumover } & 6.0 \\\text { Merchandise inventory turnover } & 4.0 \\\text { Rate of return on assets } & 6.5 \%\end{array}$

$\text { Selected Account Balances at December 31, Year I: }$

$\begin{array}{ll}\text { Accounts receivable } & \$ 355,000 \\\text { Merchandise inventory } & 190,000\end{array}$

$\text { Year } 2 \text { Operations }$

$\begin{array}{ll}\text { Sales } & \$ 1,241,000 \\\text { Cost of goods sold } & 800,000\end{array}$ Assuming that prepaid expenses are immaterial, ending merchandise inventory at December 31, Year 2 is

A) $180,000
B) $210,000
C) $220,000
D) $240,000
E) $260,000