Halaka Company has a current ratio of 3.5 and an acid-test ratio of 2.8. Current assets equal 175,000 of which 5,000 consists of prepaid expenses. The remainder of current assets consists of cash, accounts receivable, marketable securities, and inventory. Halaka Company's inventory must be:
A) $30,000
B) $40,000
C) $50,000
D) $35,000