Marissas Modes is a retail outlet for ladies fashion goods. At the year-end inventory on 31/12/2007, Marissas Modes found that it had goods on hand that had cost $50,000, which it expects to sell in 2008 for approximately $125,000 in total. The inventory in the balance sheet as at 31/12/2007 would be valued at *

a) $125,000

b) $ 62,500

c) $ 50,000

d) $ 25,000

e) none of the above

Pearls Pizza has cash of $5,000, inventory of $100,000, and accounts receivable of $45,000. Current liabilities are $50,000, and long-term liabilities are $25,000. Annual sales revenue is $750,000, and operating profit is $50,000. Pearls Pizzas inventory turnover ratio is *

a) 7.5 X

b) 5.0 X

c) 2.5X

c) 2.0X

e) none of the above

Profilo Co. has the following assets and liabilities: Assets: cash, $100; accounts receivable, $150; Inventory, $240; land, $200; plant, net of accumulated amortization, $300.Liabilities: short-term bank loan, $60; accounts payable, $160; long-term mortgage loan, $160. Profilo Co.s long-term assets total was *

a) $990

b) $880

c) $500

d) $490

e) none of the above

Which comes first in the balance sheet, inventory or equipment, and why?