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Below is a selection of information concerning Arc Inc

Accounting

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Below is a selection of information concerning Arc Inc.

• Net income for the year: $100,000
• Gross profit ratio: 40%
• Return on Sales: 16%
• Inventory turnover: 2.5

What is the company's average inventory?

Select one:

a. It cannot be calculated with the information provided

b. $150,000

c. $250,000

d. $375,000