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Brewster Company has an acid-test ratio of 1.5 and a current ratio of 2.5. Current...

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Accounting

Brewster Company has an acid-test ratio of 1.5 and a current ratio of 2.5. Current assets equal $200,000, of which $10,000 is prepaid expenses. The company's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory. Brewster Company's inventory must be:

A: 30,000

B: 110,000

C: 70,000

D: 80,000

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