Burt's TVs Has Current Liabilities of $25 Million

Burt's TVs has current liabilities of $25 million. Cash makes up 40 percent of the current assets and accounts receivable makes up another 20 percent of current assets. Burt's current ratio = 0.85 times. What is the value of inventory listed on the firm's balance sheet?

A) $4.25m.
B) $8.5m.
C) $10m.
D) $40m.

Correct Answer:

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