The following data are taken from the comparative balance sheet prepared for Route 13 Company.

Year 2 Year 1

Cash 39,063 25,000

Accounts receivable 62,500 40,000

Inventories 67,000 30,000

Property, plant, and equipment 156,250 100,000

Total assets $324,813 $195,000

Sales for Year 2 were $1,250,000. Sales for Year 1 were $800,000.

Overall, Route 13 Company is less efficient at using its assets to generate sales in Year 2 than in Year 1. What asset is responsible for this decreased efficiency?

• Inventory
• Property, plant, and equipment
• Cash
• Accounts receivable