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. $ 238000 What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places. 1.69 Hide
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. $ 238000 What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places. 1.69 Hide
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 8P
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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.
$ 238000
What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.
1.69
Hide](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9239bd3d-ff76-4bd6-8989-c7220df801f6%2F8adf9d93-16c7-4e74-95c5-a04762236656%2Fd0ecc9_processed.jpeg&w=3840&q=75)
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.
$ 238000
What will be the firm's quick ratio after Nelson has raised the maximum amount of short-term funds? Do not round intermediate calculations. Round your answer to two decimal places.
1.69
Hide
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