You have been given responsibility for overseeing a banks small business loans division. The bank has included loan covenants requiring a minimum current ratio of 1.3 in all small business loans. When you ask which inventory costing method the covenant assumes, the previous loans manager gives you a blank look. To explain to him that a companys inventory costing method is important, you present the following balance sheet information.

You ask the former loans manager to find amounts for (a), (b), (c), and (d) assuming the company began the year with 3 units of inventory at a unit cost of $12, then purchased 6 units at a cost of $13 each, and finally purchased 4 units at a cost of $17 each. A year-end inventory count determined that 2 units are on hand. References

Current assets other than inventory	$	32
Inventory		(a	)
Other (noncurrent) assets		147
Total assets	$	(b	)
Current liabilities	$	50
Other (noncurrent) liabilities		65
Stockholders equity		(d	)
Total liabilities and stockholders equity	$	(c	)