Which of the following statements are correct? I. Inventory includes raw materials, finished goods and work-in-progress. II. Inventory is a part of the working capital. III. Inventory includes goods likely to be purchased.

The correct answer is D. I and II.

Inventory is a stock of goods and materials that a company holds for the purpose of selling or using in production. It includes raw materials, work-in-progress, and finished goods. Inventory is a part of the working capital of a company, which is the difference between current assets and current liabilities.

Goods likely to be purchased are not considered inventory until they are actually purchased by the company. Therefore, statement III is incorrect.

Statements I and II are correct.