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Rock Ltd has forecast the following relationships for the forthcoming year: Non-current assets : Current assets 2:1 Liquid current assets : Current liabilities 1.5:1 Current
Rock Ltd has forecast the following relationships for the forthcoming year:
Non-current assets : Current assets 2:1
Liquid current assets : Current liabilities 1.5:1
Current assets : Current liabilities 2:1
Sales revenue : Total assets 5:1
Sales revenue for the year is expected to be 45m.
Note: liquid current assets = current assets excluding inventories
What is the forecast for inventories held at the end of the period?
a. 750,000
b. 2,500,000
c. 1,000,000
d. 1,500,000
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