Current and Quick Ratios The Nelson Company has $1,545,000 in current assets and $515,000 in current liabilities. Its initial inventory level is $380,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.8? Do not round intermediate calculations. Round your answer to the nearest dollar $23000 What will be the firm's quick rate after Nelson has raised the maxmum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places. 1.69 Hide Feedback
Current and Quick Ratios The Nelson Company has $1,545,000 in current assets and $515,000 in current liabilities. Its initial inventory level is $380,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's short-term debt (notes payable) increase without pushing its current ratio below 1.8? Do not round intermediate calculations. Round your answer to the nearest dollar $23000 What will be the firm's quick rate after Nelson has raised the maxmum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places. 1.69 Hide Feedback
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 8P
Question
![Current and Quick Ratios
The Nelson Company has $1,545,000 in current assets and $515,000 in current liabilities. Its initial inventory level is $380,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's
short-term debt (notes payable) increase without pushing its current ratio below 1.8? Do not round intermediate calculations. Round your answer to the nearest dollar
$23000
What will be the firm's quick rate after Nelson has raised the maxmum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.
1.69
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Transcribed Image Text:Current and Quick Ratios
The Nelson Company has $1,545,000 in current assets and $515,000 in current liabilities. Its initial inventory level is $380,000, and it will raise funds as additional notes payable and use them to increase inventory. How much can Nelson's
short-term debt (notes payable) increase without pushing its current ratio below 1.8? Do not round intermediate calculations. Round your answer to the nearest dollar
$23000
What will be the firm's quick rate after Nelson has raised the maxmum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.
1.69
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