question 4

Assets Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) $ 32.000 ? ? 300,000 $ 450,000 Liabilities and Stockholders' Equity Accounts payable (trade) Income taxes payable (current) Long-term debt Common stock Retained earnings $? 32.000 ? 306,000 ? $? Additional Information Current ratio (at year end) Total liabilities Total stockholders' equity Gross margin percentage Inventory turnover (Cost of goods sold + Ending inventory) Gross margin 1.5 to 1.0 80 % 11.2 times $ 375,000 30 Calculate the Inventory based on this information. Assume that the level of inventory did not change from last year