Below is a selection of information concerning Arc Inc.

• Net income for the year: $100,000
• Gross profit ratio: 40%
• Return on Sales: 16%
• Inventory turnover: 2.5

What is the company's average inventory?

Select one:

a.

$375,000

b.

$150,000

c.

It cannot be calculated with the information provided

d.

$250,000